Communications
cool_club
HelpRegister
Homework report
Here's how I fared with the Disney assignment...

Disney (DIS)

A. What premium sold for: .30 (Strike price at $50)
B. What Expiration date: August 18
C. On what day did I SELL: Monday, August 13
D. What DIS Price: $49.71 (price of stock at time of SELL)
E. APR: 39%

Notes: I had to wait a couple of hours for the order to actually fill. When I put my asking price of $.30 into the simulator, the best bid was $.24, the best ask was $.26. But the stock was moving up in the market so I thought $.30 was possible and apparently that was a good guess. Of course no sooner had my order been filled than the bid price moved up to $.32 so maybe I under-guestimated how much prices would change. Net premium was $79 or something like that.

Eric Snoek