b ) If you buy a December put option with an exercise price of 40, what is the gain/loss if you close position when stock is trading at $33.5? Why?

On the last day of October, you are considering the purchase of 100 shares of A Corporation common stock selling at $37 1/2 per share and also considering an A Corporation option. Calls December 3 3/4 2 1/2 Puts March Price 35 40 December 1 1/4 4 1/2 March 3 1/2 4 3/4 If you decide to buy a March call option with an exercise price of 35, what is your dollar gain (loss) if you close your position when the stock is selling at 43 1/2? Why? 43.5 -35-5- $3.50 If you buy a December put option with an exercise price of 40, what is the gain/loss if you close position when stock is trading at $33.5? Why? a. b