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17 and 18 Intro Bill buys a call option with an exercise price of $40 for $7.76 from Simon Part 1 IB Attempt 1/8 for
17 and 18
Intro Bill buys a call option with an exercise price of $40 for $7.76 from Simon Part 1 IB Attempt 1/8 for 10 pts What is Simon's profit if the stock price is $0 on the expiration date of the option? 1+ decimals Submit Part 2 IB Attempt 1/8 for 10 pts. What is Simon's profit if the stock price is $50 on the expiration date of the option? 21 decimals Submit Submit Part 3 IB Attempt 1/8 for 10 pts What is Simon's profit if the stock price is $100 on the expiration date of the option? 0+ decimals Submit About Blog Contact Instructor Guide Privacy Accepi 2012 - 202 Intro An investor has $14,000 to invest and believes that the IBM stock price is going to increase in the following 12 months from the current stock price of $200. Call options on IBM stock expiring in 12 months have a strike price of $208 and sell at a premium of $20 each. Assume that the stock price will be $279 per share after 12 months Part 1 - Attempt 1/8 for 10 pts. What will be the investor's rate of return if they buy 70 shares? 27 decimals Submit Part 2 Attempt 1/8 for 10 pts What will be the investor's rate of return if they buy 700 call options? 1 decimals Step by Step Solution
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