Business, 26.02.2020 03:30 jhanley5862

Both a call and a put currently are traded on stock XYZ; both have strike prices of $45 and expirations of 6 months.

a. What will be the profit to an investor who buys the call for $4 in the following scenarios for stock prices in 6 months?
(i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60.

Stock Price Profit
a. $40 $
b. $45 $
c. $50 $
d. $55 $
e. $60 $

b. What will be the profit to an investor who buys the call of $6.5 in the following scenarios for stock prices in 6 months? (a)$40; (b)$45; (c)$50; (d)$55; (e)$60.

Stock Price Profit
a. $40 $
b. $45 $
c. $50 $
d. $55 $
e. $60 $

Answers: 2

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Both a call and a put currently are traded on stock XYZ; both have strike prices of $45 and expirati...

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