General Electric: (GE) Last trade 16.16 (10/08/2009)
CALL OPTIONS PUT OPTIONS
Strike Last Vol Open Int Strike Last Vol Open Int
11 5.19 32 13,269 11 0.09 83 76232
12 4.35 36 28,695 12 0.14 90 46863
13 3.4 74 27,751 13 0.25 200 46412
14 2.58 173 69,209 14 0.42 161 34042
15 1.83 1,310 66,182 15 0.68 215 56043
16 1.2 235 43,143 16 1.1 580 34902
17 0.81 3,926 55,078 17 1.68 3074 20107
18 0.49 214 30,421 18 2.44 43 5770
19 0.31 154 10,829 19 3.05 15 2243
20 0.2 1,346 108,704 20 3.95 108 6255
21 0.13 5,873 2,669 21 5.1 46 638
22.5 0.1 4 6,482 22.5 6.3 46 1459
25 0.06 24 3,211 25 8.6 110 2092
General Electric: (GE) Last trade 16.16 (10/08/2009)
Assume "Last" column the price where you can buy and sell that particular option or options.
Assume no commission or other costs.
Assume one option contract is based on 100 shares of stock; if the contract is $2.00 that means $2 times 100 shares = $200
"Vol" means the number of contracts, for that specific day, traded in the market.
"Open Int" means the number of contracts outstanding after that days trade volumes are considered. Open Int of 50 means there are
50 contracts where someone has sold them (sellers are considered "short" the contract) and 50 contracts where someone owns them.
Buyers are considered "long" the contract.
Point Value
6 If you purchase 100 shares of GE (today) and bought one put contract with a strike of $17, what is your total out of pocket cost?
6 If you purchased 100 shares of GE (today) and sold one call contract with a strike price of 18, what is your total out of pocket cost?
6 Concerning today's trading volume, rank the following options from high volume traded to lowest volume trade:
(Notation: P16 is put with $16 strike; C16 is call with $16 strike)
16 Call 16 Put
17 Call 17 Put
(answer selections might be C16 / C17 / P17 /P16 )
A synthetic long is a combination of two options which represents identical movements in a stock.
A synthetic long would be a long call and short (sold) put at the same strike price.
If you bought a call with a strike price of $16 and sold a put with a strike price of $16, what is the difference between your out of pocket
cost of these two positions as compared to buying the stock alone?
If you bought GE today and sold a call with a strike price of 17, what would be your breakeven point(s) on the day of expiration?
Holding period return is the % return for the period in question and is not annualized. {Equation: [P(1) - P(0)] divided by P(0) }
If you purchased a 17 call on GE and sold a 19 call on GE today, what is the holding period return at expiration if the stock
is trading at $22 per share (assume no premiums on either position before expiration and no transaction costs)
