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Please #2, thank you! QUESTION 2 7 points Save Answer Consider an exchange-traded call option contract to buy 500 shares with a strike price of
Please #2, thank you!
QUESTION 2 7 points Save Answer Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Explain how the terms of the option contract change when there is a. A 7% stock dividend b. A 7% cash dividend C. A 3-for-2 stock split Select the best answer in each drop-down list: a. . The option contract becomes one to buy v shares with an exercise price $ b. v. The terms of an options contract are not normally adjusted for cash dividends. v. The option contract becomes one to buy shares with an exercise price of $ QUESTION 3 8 points Save Answer A stock is selling for $35. At the same time a six-month put option to sell the stock for $35 is selling for $3. If the investor purchases BOTH the stock AND the put (i.e, construct a protective put), what is the net dollar profit or loss if the price ends at $0, $30, $35, $49, or $1000 at maturity? (please make a Table showing the results). What is the maximum potential loss from this protective put? What is the maximum potential gain from this protective put? What is the break-even stock pricesStep by Step Solution
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