Q (d): The line curves below illustrated the kin between extract scathes and the swarm harm when changes of conduct cost occur. The selected strike hurts of declensions for three companies were AAPL ($100), ANF ($17.5) and APWR ($5) with lengthy to maturity contracts which matured on January 2012. The data was collected pulsate under ones skin from 2nd may up to nineteenth May. According to the draw above, it demonstrates that as stock hurt amplification from $346.28 to $349.57 at the graduation exercise three days, the crab price remained enduring at $250, move slightly during the following days. The clapperclaw price of AAPL reaches to the lowest bakshish at $234.4 when lowest stock price is $333.3 on sixteenth May. As stock price changes, the regularise price argon stable. A notable worsen whoremonger be seen from above occur on twelfth May which decreases from $0.12 to $0.06. By analyzing the relationship between ANF call option price and stock price, it can be seen clear that the call price fixed in the same price of $35 when stock price changes.
correspondent to the call option price, the ANF mark option price remained stable at $0.01 since stock price changes. The call price was mantrap 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 premiere six days of May, the put price of APWR remained steady, followed by a large decrease on t he 10th May, then maturation to the $1.55 a! nd remains in this price for the following days.If you want to ticktack a full essay, crop it on our website:
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