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Please answer all for a like! 1. What is your profit if you buy a call, hold it to expiration and the stock price at
Please answer all for a like!
1. What is your profit if you buy a call, hold it to expiration and the stock price at expiration is at $37 2. What is the breakeven stock price at expiration on the transaction described in problem 1 ? 3. What is the maximum profit on the transaction described in problem 1 ? 4. What is the maximum profit that the writer of a call can make? 5. Suppose the buyer of the call in problem 1 sold the call two months before expiration when the stock price was $33. How much profit would the buyer make? 6. Suppose the investor constructed a covered call. At expiration the stock price is $27. What is the investor's profit? 7. What is the breakeven stock price at expiration for the transaction described in problem 6 ? 8. If the transaction described in problem 6 is closed out when the option has three months to go and the stock price is at $36, what is the investor's profit? 9. What is the maximum profit from the transaction described in Question 6 if the position is held to expiration? 10. What is the minimum profit from the transaction described in Question 6 if the position is held to expiration Step by Step Solution
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