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1. Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and maturities of six months. The
1. Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and maturities of six months. The stock price is $45 in six months. (8pts) a. Will you exercise the option? What would be the profit per share of stock to an investor who buys the call for $4? (4pts) b. Will you exercise the option? What would be the profit per share of stock to an investor who buys the put for $4? (4pts)
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