The writer is very fast, professional and responded to the review request fast also. Thank you.
1. You are considering buying a call option for Bernie Bros, a company that is building a series of assisted living homes for aging hippies. Bernie Bros current stock price is $27.50, and the call option you are looking at sells for $6.40 with a $24.00 strike price and six months to expiration.
a. What is the intrinsic value of this option today?
b. What is the premium of this option today?
c. Draw a payoff graph for this option with the stock price at expiration on the x axis. Plot the payoffs for both the buyer and the seller of this call option.
d. If the perceived future volatility of the shares of Bernie Bros was to decrease, what would happen to the price of this option?
e. If you decided you wanted to buy a one-year option instead of the six month, would it cost you more or less? Why?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more