Question
a. What will be the profit to an investor who buys the call for $4.5 in the following scenarios for stock prices in 6 months?
a. What will be the profit to an investor who buys the call for $4.5 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place.)
Stock Price | Profit | |
I | $40 | |
ii | $45 | |
iii | $50 | |
iv | $55 | |
v | $60 |
b. What will be the profit to an investor who buys the put for $5 in the following scenarios for stock prices in 6 months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place.)
Stock Price | Profit | |
i | $40 | |
ii | $45 | |
iii | $50 | |
iv | $55 | |
v | $60 |
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