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Business, 19.11.2019 01:31 adam463

How can financial institutions with stock portfolios use stock options when they expect stock prices to rise substantially but do not yet have sufficient funds to purchase more stock? explain how and why the option premiums may change in response to a surprise announcement that the fed will increase interest rates even if stock prices are not affected? assume you are looking at a call option on bristol cities inc. with an exercise price of $104. current stock price today is $102 and the option has a premium of $3. what will be the profit or loss earned by the speculator at prices of $101, $104 and $112 just before time of expiry? assume the option will not be exercised until maturity.

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