Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show work if possible Examine the following prices for WePlay, Inc. January 2021 options. At the time of the option quotes, WePlay stock traded
please show work if possible
Examine the following prices for WePlay, Inc. January 2021 options. At the time of the option quotes, WePlay stock traded at $60.00 Option Strike Call Price Put Price 55 10.50 3.75 60 6.50 6.00 65 4.25 8.50 70 2.75 11.50 Assume you take the following position: Sell one put with a strike of $60 Buy two puts with a strike of $55 If WePlay stock ends up at $58.50 at the expiration date for the options, what is the profit of the position (per share)? Ignore interest. $1.50 $3.00 $0 0-$1.50 -$3.00 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started