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Can someone help me with the last one please? ECON 133 > Excel: Options and futures Problem 3 Intro You have bought 1 share of
Can someone help me with the last one please?
ECON 133 > Excel: Options and futures Problem 3 Intro You have bought 1 share of stock for $52.98 and sold (wrote) 1 call option on the same stock. Such a portfolio is called a covered call. The option has an exercise price of $60, a price (premium) of $1.79, and expires in 5 months. Attempt 2/10 for 10 pts. Part 1 What is your profit from buying the stock only if the stock price is $20 in 5 months (in $)? -32.98 Correct A B 52.98 1.79 Stock price 2 Call price 3 Strike price 4 # of shares 5 # of options 60 -- +10 1 1 7 Stock price Profit from share 8 0 -52.98 =A8-B$1 9 10 -42.98 10 20 -32.98 =A10-B$1 Part 2 B* Attempt 1/10 for 10 pts. What is your profit from selling (writing) the option if the stock price is $50 in 5 months (in $)? 1.79 Correct A B D 1 52.98 2 Stock price Call price Strike price 1.79 3 60 4 # of shares 1 5 # of options 1 6 7 Stock price Profit from Profit share from call -52.98 1.79 =-(max(A8-B$3,0)-B$2) -42.98 1.79 8 0 9 10 10 20 -32.98 1.79 11 30 -22.98 1.79 12 40 -12.98 1.79 13 50 -2.98 1.79 =-(max(A13-B$3,0)-B$2) Attempt 6/10 for 10 pts. Part 3 What is your total profit if the stock price is $100 in 5 months (in $)? 1+ decimals SubmitStep by Step Solution
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