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Can someone help me solve part 2 and part 3 please? Problem 2 Intro You have bought 1 share of stock for $42.39 and 2
Can someone help me solve part 2 and part 3 please?
Problem 2 Intro You have bought 1 share of stock for $42.39 and 2 call options on the same stock. Each option has an exercise price of $50, cost $4.27 each, and expires in three months. Attempt 1/10 for 10 pts. Part 1 What is your profit from buying the stock (only) if the stock price is $20 in three months (in $)? Ignore the options for now. -22.39 Correct A B 42.39 4.27 1 Stock price 2 Call price 3 Strike price 4 # of shares 5 # of options 50 1 2 6 7. Stock price Profit from shares 8 0 -42.39 =(A8-B$1)*B$4 9 10 -32.39 10 20 -22.39 =(A10-B$ 1)*B$4 | Attempt 7/10 for 10 pts. Part 2 What is your profit from buying the options (only) if the stock price is $50 in three months (in $)? Ignore the stock for now. 1+ decimals Submit | Attempt 1/10 for 10 pts. Part 3 What is your total profit if the stock price is $100 in three months (in $)? 0+ decimals SubmitStep by Step Solution
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