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Problem 13 Refer to the stock options on IBM in the following table Expiration Jul Strick Last 50 5.00 Call Volume Open Interest 32874 46311
Problem 13 Refer to the stock options on IBM in the following table Expiration Jul Strick Last 50 5.00 Call Volume Open Interest 32874 46311 | Last 14.00 Put Volume Open Interest 15148 9711 nat will be the profit/loss and the return to an investor who buys the call in the following scenarios for stock prices in six months? Fill in the following table. Answer: Stock Price 45 50 Initial Cost ($) Profi/Loss ($) Return 50 To 0% SO 1sts)=0%" od 0%* 55 50 What will be the profit/loss and the return to an investor who buys the put in the following scenarios for stock prices in six months? Fill in the following table. Stock Price 50 O 50 Initial Cost ($) Profi/Loss ($) Return 10% SO 50 5 (5-4): 5-20% L0% x 55
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