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2. Assume on expiration the stock trades at $132 (S1). Assume each option above had both a buyer and seller at the prices listed in
2. Assume on expiration the stock trades at $132 (S1). Assume each option above had both a buyer and seller at the prices listed in the table on page 1. Given where the stock ended up trading at expiration, give me the payoff/payout and profit/loss for each trader on a per share basis. Do not factor in any interest earned or forgone. (KEEP IN MIND-DERIVATIVES DO NOT CREATE OR DESTRY WEALTH, THEY ARE JUST A TRANSFER OF RISK AND WEALTH...so the payout and profit/loss for the seller should be the opposite of the buyer.) Buyer Total Profit/Loss Seller Payout Payoff Total Profit/Loss $125 Call $125 Put $130 Call $130 Put $135 Call $135 Put 2. Assume on expiration the stock trades at $132 (S1). Assume each option above had both a buyer and seller at the prices listed in the table on page 1. Given where the stock ended up trading at expiration, give me the payoff/payout and profit/loss for each trader on a per share basis. Do not factor in any interest earned or forgone. (KEEP IN MIND-DERIVATIVES DO NOT CREATE OR DESTRY WEALTH, THEY ARE JUST A TRANSFER OF RISK AND WEALTH...so the payout and profit/loss for the seller should be the opposite of the buyer.) Buyer Total Profit/Loss Seller Payout Payoff Total Profit/Loss $125 Call $125 Put $130 Call $130 Put $135 Call $135 Put
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