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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets break down each part of the problem 1 Calculating the option details Given You are short a 100 call option on 100 shares of Home Depot The premiu...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started