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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

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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 | 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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