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4. You are given the following information about the ZZZ stock: current price per share is 29.83. The current premium for calls and puts of
4. You are given the following information about the ZZZ stock: current price per share is 29.83. The current premium for calls and puts of various strikes are as follows: Strike Price Calls Puts 28.00 2.85 1.12 30.00 1.72 1.99 32.00 0.95 3.25 The options expire in 90 days (one quarter). The continuously compounded risk-free rate is 4%. a. What is the profit of a long call option with a strike price of 30.00 if the stock price in one quarter is 34.25? b. What is the profit of a short put option with a strike price of 32.00 if the stock price in one quarter is 34.257 c. What is the profit on a bull call spread with lower (long position) strike price of 28.00 and higher (short position) strike price of 32.00 if the stock price in one quarter is 31.00
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