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1) You are short a $100 call on 100 shares of Home Depot with a premium of $1.24/share. When the option expires Home Depot

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1) You are short a $100 call on 100 shares of Home Depot with a premium of $1.24/share. When the option expires Home Depot is trading at $98.28. The premium (paid) collected on this option is $ The intrinsic value of this option is $( The profit (loss) on this option is $ The breakeven price on this option is $ 2) This graph represents 6,000 4,000 2,000 0 -2,000 sp -4,000 $20 $40 $60 $80 $100 $120 6,000 Ovalue of a long call Oprofit of a long call Ovalue of a short call Oprofit of a short call

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