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Social Science Clinic => Business => Finance => Topic started by: Adc3669 on Mar 29, 2022

Title: Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow was at 26,350.
Post by: Adc3669 on Mar 29, 2022

Question 1

Anthony is confident that shares of SolarTech will greatly increase in value, but thinks that it may be a year or more before that happens.  He should buy
◦ ETF calls.
◦ LEAP puts.
◦ LEAP calls.
◦ Index calls.

Question 2

Bob's DJIA Index call option had a strike price of 261.  When he exercised the option, the Dow was at 26,350.
◦ Bob received $2,500 from the writer of the contract.
◦ Bob paid $250 to the writer of the contract.
◦ Bob received $250 from the writer of the contract.
◦ Bob paid $2,500 to the writer of the contract.

Title: Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow was at 26,350.
Post by: sin on Mar 29, 2022

Answer 1

LEAP calls.

Answer 2

Bob received $250 from the writer of the contract.

Title: Re: Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow wa
Post by: adan guerrero on Aug 10, 2022

Thank you

Title: Re: Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow wa
Post by: Alyssa Aceves on Aug 10, 2022

Thank you!