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Can you please let me know if my answers are correct for A & B? Both a call and a put currently are traded on
Can you please let me know if my answers are correct for A & B?
Both a call and a put currently are traded on stock XYZ; both have strike prices of $43 and maturities of six months. a. What will be the profit/loss to an investor who buys the call for $4.20 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 $ 33 $ (4.20) b. $ 38 $ (4.20) $ 43 $ (4.20) d. 48 $ 0.80 53 $ 5.80 C. $ $ $ e. b. What will be the profit/loss in each scenario to an investor who buys the put for $7.70? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss a. $ 33 $ 2.30 b. $ 38 $ (2.20) C. $ 43 $ (2.20) d. 48 $ (2.20) 53 $ (2.20) d. $ $ eStep by Step Solution
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