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FIN4600-Exam - Compatibility Mode ign Layout References Mailings Review View 12 A A Aa A ABCDE Abedi Adil Aslide ABCD di Emphasis Heading Heading 2

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FIN4600-Exam - Compatibility Mode ign Layout References Mailings Review View 12 A A Aa A ABCDE Abedi Adil Aslide ABCD di Emphasis Heading Heading 2 NO Problem 1 The following information relates to the options of Intel: Strike Price S25 $35 $25 $35 Expiration October, 2020 October, 2020 October, 2020 October, 2020 Call or Put Call Call Put Put Price $6.00 $0.50 $0.70 $6.25 Intel stock is selling for $30. a) Classify each of the above options according to whether they are in the money or out-of-the money. (4 points) b) Determine the profit/loss for the buyer AND seller of the October 25 call for the following stock prices at expiration: $20, $25, $30. (17 points) E English (United States) O Focus 80 DOO GOO FE DIL DD 59 FS Fo F7 # $ % A & 3 4 5 6 7 d FIN4600-Exam - Compatibility Mode ign Layout References Mailings Review View 12 A A Aa A ABCDE Abedi Adil Aslide ABCD di Emphasis Heading Heading 2 NO Problem 1 The following information relates to the options of Intel: Strike Price S25 $35 $25 $35 Expiration October, 2020 October, 2020 October, 2020 October, 2020 Call or Put Call Call Put Put Price $6.00 $0.50 $0.70 $6.25 Intel stock is selling for $30. a) Classify each of the above options according to whether they are in the money or out-of-the money. (4 points) b) Determine the profit/loss for the buyer AND seller of the October 25 call for the following stock prices at expiration: $20, $25, $30. (17 points) E English (United States) O Focus 80 DOO GOO FE DIL DD 59 FS Fo F7 # $ % A & 3 4 5 6 7 d

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