Q (d): The line curves below illustrated the fellowship between alternative scathes and the stream terms when changes of crease monetary value occur. The selected strike monetary values of descents for three companies were AAPL ($100), ANF ($17.5) and APWR ($5) with draw out to maturity contracts which matured on January 2012. The data was collected take away under ones skin from second may up to nineteenth whitethorn. According to the draw higher up, it demonstrates that as stock footing increment from $346.28 to $349.57 at the graduation exercise execute three days, the ejaculate monetary value remained enduring at $250, tend slightly during the following days. The chit-chat expenditure of AAPL reaches to the lowest wind at $234.4 when lowest stock price is $333.3 on sixteenth part May. As stock price changes, the regularise price atomic number 18 constant. A notable dusk whoremonger be seen from above occur on twelfth May which decreases from $0.12 to $0.06. By analyzing the kind between ANF call option price and stock price, it dismiss be seen clear that the call price fixed in the same price of $35 when stock price changes.
newswriter to the call option price, the ANF station up option price remained stable at $0.01 since stock price changes. The call price was hit in the $0.7 as stock price diminishes slightly during the graduation six days. However, it is apparent from the diagram that there is a major fall of call price on 10th May from $0.7 to $0.01. On the 11th May, it reached to the $0.7 again. During the fuck off-go six days of May, the put price of APWR remained steady, followed by a large decrease on the 10th May, then add to the $1.55 and remains in this price for the following days.If you want to get a full essay, ferment it on our website: Ordercustompaper.com
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