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1. Currently shares of the iShares Russell 2000 (IWM) ETF are trading for $122.97. An investor is planning to purchase 500 shares of IWM within

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1. Currently shares of the iShares Russell 2000 (IWM) ETF are trading for $122.97. An investor is planning to purchase 500 shares of IWM within the next month. Currently, IWM 125 call options with one month until expiration are available with a premium of $0.60. Assume the investor purchases 5 call option contracts (covering 500 shares) today. Complete the table below to show the total cashflow at the potential IWM share prices in one month if the investor purchases 500 shares of IWM and also closes out the option position immediately prior to expiration of the options. $120/Share $125/Share $125.60/Share $130/Share CF from purchasing 500 shares of IWM Option Profit/Loss Net CF 1. Currently shares of the iShares Russell 2000 (IWM) ETF are trading for $122.97. An investor is planning to purchase 500 shares of IWM within the next month. Currently, IWM 125 call options with one month until expiration are available with a premium of $0.60. Assume the investor purchases 5 call option contracts (covering 500 shares) today. Complete the table below to show the total cashflow at the potential IWM share prices in one month if the investor purchases 500 shares of IWM and also closes out the option position immediately prior to expiration of the options. $120/Share $125/Share $125.60/Share $130/Share CF from purchasing 500 shares of IWM Option Profit/Loss Net CF

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