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Given the following information: Price of a stock $50 Strike price of a six-month call $45 market price of the call $9 number of shares
Given the following information:
Price of a stock $50
Strike price of a six-month call $45
market price of the call $9
number of shares $100
1, the intrinsic value of the call is ______
2, the time premium paid for the call is _____
3, If the investor established a covered call position, the amount invested is _____
4, The most the buyer of the call can lose is _____
5, The maximum amount the seller of the call Naked can lose is _______
After 6 months (ie. at the expiration date of the call), the price of the stock is $52.
6, The profit (loss) from buying the call is ______.
7, The price (loss) from selling the call naked is _______.
8, The profit (loss) from selling the call covered is ______.
The questions originated from the textbook- Introduction to Investments (10th edition) from theauthor: Herbert B. Mayo.
Pls show the necessary calculation work also. Thank you!
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