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Can someone help me determine the first three responses to this question? Consider the following option portfolio: You write a January 2012 expiration call option

Can someone help me determine the first three responses to this question?image text in transcribed

Consider the following option portfolio: You write a January 2012 expiration call option on IBM with exercise price $172, and the price of the call option is $8.93. You also write a January expiration IBM put option with exercise price $167, the price of the put option is $10.85. Instructions: for parts a, b, and c, enter your answer as a decimal rounded to the nearest cent. a. What will be the profit/loss on this position if IBM is selling at $160 on the option expiration date? $ b. What will be the profit/loss on this position if IBM is selling at $178 on the option expiration date? $ c. At what two stock prices will you just break even on your investment (i.e., zero net profit)? For the put, this requires that: $ For the call this requires that: $ d. What kind of bet" is this investor making; that is, what must this investor believe about IBM's stock price in order to justify the position? betting that the IBM stock price will go up. O betting that the IBM stock price will go down. betting that the IBM stock price will have low volatility. betting that the IBM stock price will have high volatility

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