Question
1.Mae has a long stock position @ $55.She is concerned that the stock will drop and thus protects her position with a long 60 put
1.Mae has a long stock position @ $55.She is concerned that the stock will drop and thus protects her position with a long 60 put @ 1.50.If the stock goes to $35, show her profit/loss. If the stock goes to $82, what is the profit/loss?
2.Zeke has a long stock position @ $35.Due to his bullish optimism he includes a long 50 call @ 1.50.If the stock goes to $55, what is his profit/loss?If the stock goes to $25, what is his profit/loss?If the stock goes to $85, what is the profit/loss?
3.Jean-Paul decides to get a short stock position @$50.Due to his cautious nature he includes a long 65 call at $1.00.If the stock goes to $20 what is his profit/loss?If the stock goes to $90, what is the profit/loss?
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