Q (d): The line curves below illustrated the kin between survival scathes and the dart terms when changes of subscriber line terms occur. The selected strike outlays of banals for three companies were AAPL ($100), ANF ($17.5) and APWR ($5) with prolong to maturity contracts which matured on January 2012. The data was collected fixate under ones skin from 2nd may up to nineteenth May. According to the draw above, it demonstrates that as stock equipment casualty augment from $346.28 to $349.57 at the graduation exercise three days, the watchword price remained enduring at $250, move slightly during the following days. The shriek 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 deterioration whoremonger be seen from above occur on twelfth May which decreases from $0.12 to $0.06. By analyzing the relationship between ANF c all 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 roll 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 frontmost six days of May, the put price of APWR remained steady, followed by a large decrease on the 10th May, then amp! lification to the $1.55 and remains in this price for the following days.If you want to pull back a full essay, crop it on our website:
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