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Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and expirations of six months. Required: a.
Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and expirations of six months. Required: a. What will be the profit/loss to an investor who buys the call for $4.50 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss 30 35 $ $ $ $ $ 40 45 50 b. What will be the profit/loss in each scenario to an investor who buys the put for $8.00? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Profit/Loss Stock Price $ 30 $ 35 $ 40 45 $ $ 50
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