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I will give thumbs up. Please help a-d! Use the following information to complete questions 1-2. The current spot price of the stock of Zoom
I will give thumbs up. Please help a-d!
Use the following information to complete questions 1-2. The current spot price of the stock of Zoom (ZM) is 380.00. The current 3 month risk free interest rate is 3.00% The forward price for a 3 month forward contract on ZM stock is 391.04. The forward price for a 6 month forward contract on ZM stock is 403.14. 1. You are given that a 3 month European style call option on ZM stock with a strike price of 400.00 has an option premium of 11.50. Compute the profit for each given combination of security position and spot price in 3 months. a. Long call, 390.00 b. Short call, 375.00 C. Long Forward, 400.00 d. Long Call, 415.00Step by Step Solution
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