please help 19
Question Help non 10 John has been following the stock market very closely over the past 18 months and has a strong belief that future stock prices will be significanty higher. He has two alternatives that he can loow. The first is to une a long term strategy purchase the stock today and sell it sometime in the future possibly higher price. The other states to buy a three-rontal option. The relevant Information needed to analyze these alternatives is presented below: Current stock price $49 Desire to buy one round lot = 100 h Three month af option has a strike price of 551 and a cal premium of a in scenario on the stock price three months from now is 55 1. What is the long-potonprofit or loss? 2. What is the breakeven point of the call option? 3. is the option in or out of the money? 4. What the option profit or loss? htio Wh to holt YE an 1. if the stock price three mons from now is 550, the long position of folos) (Round to the nearest datora polivebet for Brott and negative number for th SE IN Question Desires to buy one round lot 100 shares Three-month call option has a strike price of $51 and a call premium of $1 a. In scenario one, if the stock price three months from now is $59: 1. What is the long position profit or loss? 2. What is the breakeven point of the call option? 3. Is the option in or out of the money? 4. What is the option profit or lose? b. In scenario two, if the stock price three months from now is $44 1. What is the long position profit or loss? 2. What is the breakeven point of the cat option? 3. Is the option in or out of the money? 4. What is the option profit or loss? a1. If the stock prioo tiro months from now is 550, the long-position profit (or loss) is $(Round to the nearest dotar Enter as a positive number for profit and a regative number for a los