1. Given the following information about July 15, 2022 TSLA put contract: I bought 22 contracts on May 23, 2022 as per the data below:
X = $ 700
S = $ 673.26
P = $ 90.30
On 5/23/22, assume the risk free rate was 2.09% (Ignore all transactions costs)
a) Calculate the put’s intrinsic value and time value at purchase (per share) (5 pts)
b) Suppose at expiration, the stock price is $ 690.75/share. Ignoring transactions cost, what is my ROI, both in $ and %? (10 pts)
c) Figure out the implied volatility of TSLA (5 pts) (For parts (a) and (b) show all calculations for full credit.
