Question
A speculator buys a put option with a strike of $40 for $2.46. The stock is currently priced at $40.66 and moves to $42.61 on
A speculator buys a put option with a strike of $40 for $2.46. The stock is currently priced at $40.66 and moves to $42.61 on the expiration date. What is the speculator's profit or loss per share? (Do not ignore the premium paid.)
A speculator sells a call option with a strike of $25 for $2.24. The stock is currently priced at $23.84 and moves to $27.46 on the expiration date. What is the speculator's (i.e., the call seller's) profit or loss per share? (Do not ignore the premium collected.)
A speculator sells a put option with a strike of $35 for $2.44. The stock is currently priced at $35.62 and moves to $32.13 on the expiration date. What is the speculator's (i.e., the call seller's) profit or loss per share? (Do not ignore the premium collected.)
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
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