Question
Both a call and a put currently are traded on stock XYZ; both have strike prices of $42 and maturities of six months. a. What
Both a call and a put currently are traded on stock XYZ; both have strike prices of $42 and maturities of six months. a. What will be the profit/loss to an investor who buys the call for $4.30 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 a. $32 $ b. 37 c. 42 d. 47 e. 52 b. What will be the profit/loss in each scenario to an investor who buys the put for $7.80? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss a. $32 $ b. 37 c. 42 d. 47 e. 52
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