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Both a call and a put currently are traded on stock XYZ, both have strike prices of $60 and maturities of six months. a. What
Both a call and a put currently are traded on stock XYZ, both have strike prices of $60 and maturities of six months. a. What will be the profit/loss to an investor who buys the call for $4.15 in the following scenarios for stock prices in six months? (La amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss a. $ 50 $ (4.15) b. $ 55 $ (4.15) C. $ 60 $ (4.15) d. $ 65 $ 0.85 e. $ 70 $ 5.85 b. What will be the profit/loss in each scenario to an investor who buys the put for $7.00? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss S 50 $ 4.00 55 S (1.00) d. 65 0.85 e. $ 70 5.85 b. What will be the profit/loss in each scenario to an investor who buys the put for $7.00? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss a. $ 50 $ 4.00 $ 55 $ (1.00) (6.00) C 60 $ d. $ 65 $ (6.00) (6.00) e. $ 70 $
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