Q1 Suppose a stock index contains the stock of 3 firms : A, B and...
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Q1 Suppose a stock index contains the stock of 3 firms : A, B and C. The stock prices for the three firms are $27, $26 and $77, respectively . The firms have 112 million , 116 million and 191 million shares outstanding , respectively . If the index is price -weighted , calculate its initial value . (round your answer to 2 decimal places ) q2 You have purchased a put option on ABC common stock for $ 3 per contract . The option has an exercise price of $ 58. What is your net profit on this option if stock price is $ 46 at expiration ?
Suppose a stock index contains the stock of 3 firms : A, B and C. The stock prices for the three firms are $27, $26 and $77, respectively . The firms have 112 million , 116 million and 191 million shares outstanding , respectively . If the index is price -weighted , calculate its initial value . (round your answer to 2 decimal places )
q2
You have purchased a put option on ABC common stock for $ 3 per contract . The option has an exercise price of $ 58. What is your net profit on this option if stock price is $ 46 at expiration ?
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