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Both a call and a put currently are traded on stock XYZ; both have strike prices of $45 and maturities of six months. a. What
Both a call and a put currently are traded on stock XYZ; both have strike prices of $45 and maturities of six months. |
a. | What will be the profit/loss to an investor who buys the call for $4.65 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. | $35 | $ | |
b. | 40 | ||
c. | 45 | ||
d. | 50 | ||
e. | 55 | ||
b. | What will be the profit/loss in each scenario to an investor who buys the put for $7.50? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) |
Stock Price | Profit/Loss | ||
a. | $35 | $ | |
b. | 40 | ||
c. | 45 | ||
d. | 50 | ||
e. | 55 | ||
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