Question
If You simultaneously purchase an underlying priced at $87 and write down a call option on it with a strike price of $90 selling at$6.
If You simultaneously purchase an underlying priced at $87 and write down a call option
on it with a strike price of $90 selling at$6.
a. Determine the profit for your strategy if the price of the underlying at expiration is $80
b. Determine the profit for your strategy if the price of the underlying at expiration is $75
c. What is the maximum profit? At what price?
d. What is the maximum loss? At what price?
e. What is the breakeven price at expiration?
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
