Question
1. A speculator sells a call option with a strike of $25 for $0.83. The stock is currently priced at $23.75 and moves to $28.75
1. A speculator sells a call option with a strike of $25 for $0.83. The stock is currently priced at $23.75 and moves to $28.75 on the expiration date. What is the speculator's (i.e., the call seller's) profit or loss per share? (Do not ignore the premium collected.)
2. A speculator sells a put option with a strike of $35 for $1.67. The stock is currently priced at $37.87 and moves to $33.28 on the expiration date. What is the speculator's (i.e., the call seller's) profit or loss per share? (Do not ignore the premium collected.)
3. A speculator buys a call option with a strike of $50 for $2.59. The stock is currently priced at $51.63 and moves to $51.33 on the expiration date. What is the speculator's profit or loss per share? (Do not ignore the premium paid.)
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