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Consider a stock priced at $30. There are put and call options available at exercise prices of 30 and a time to expiration of six
Consider a stock priced at $30. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.B9 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Suppose the investor bought a call, and hold it to expiration. What is the investor's profit, if the stock price at expiration is $37 What is the breakeven stock price at expiration What is the maximum profit on the transaction What is the maximum profit that the writer of a call can make Suppose the investor constructed a covered call. At expiration the stock price is $27. What is the investor's profit At expiration the stock price is $41. What is the investor's profit
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