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Please help with these problems. If you could show me how you got your answers it would be greatly appreciated. 1 What are the intrinsic
Please help with these problems. If you could show me how you got your answers it would be greatly appreciated.
1 What are the intrinsic values and time premiums paid for the following options? Option Type Option Price of Option Price of Stock DPZ, 125 call $9.06 $131.18 DPZ, 140 call $1.90 $131.18 DPZ, 115 put $1.35 $131.18 DPZ, 150 put $21.10 $131.18 If the stock sells for $128 at the expiration date of the preceding options, what are the profits or losses for the writers and buyers of these 2 Given the following information, price of stock $60.00 strike price of four-month call $65.00 market price of call $0.72 strike price of four-month put $65.00 market price of put $5.70 a) Which option is "in" the money? b) If an investor establishes a naked call position, what amount is received? c) What is the most the buyer of the put can lose? d) What is the most the writer of the call can lose? e) What is the maximum amount a short seller (of the stock) can lose? f) If the price of the stock falls, what happens to the value of the put? At expiration of the options, the price of the stock is g) What is the profit (loss) from buying the call? h) What is the profit (loss) from buying the put? i) What is the profit (loss) from writing the call covered? j) What is the profit (loss) from selling the put? $62.00Step by Step Solution
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