Problem 2-29

Both a call and a put currently are traded on stock XYZ; both have strike prices of $54 and maturities of six months.

a.	What will be the profit/loss to an investor who buys the call for $4.40 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

	Stock Price	Profit/Loss
a.	$44	$
b.	49
c.	54
d.	59
e.	64

b.	What will be the profit/loss in each scenario to an investor who buys the put for $6.40? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

	Stock Price	Profit/Loss
a.	$44	$
b.	49
c.	54
d.	59
e.	64