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QUESTION 1. b. What are both the payoff and the profit or loss per share for an investor in the following two situations? i. Jean
QUESTION 1.
b. What are both the payoff and the profit or loss per share for an investor in the following two situations? i. Jean buys the June, 2022 expiration Paypal call option for $6.40 with an exercise price of $120, if the Paypal stock price at the expiration date is $132? ii. Joan buys a Paypal put option for $4.50 with the same expiration date and exercise price as Jeans call option, and the Paypal stock price is also $132 at the expiration date?
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