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QUESTION 3 2. Determine, generally based on justification, in what manner does seller a put option set targeted? (8 marks) a b. Analyze the value
QUESTION 3 2. Determine, generally based on justification, in what manner does seller a put option set targeted? (8 marks) a b. Analyze the value of a call option if the stock price is zero? What if the stock price is extremely high (relative to the strike price)? (12 marks) c. Suppose you have an option to buy a share of ABC Corp stock for $100. The option expires tomorrow, and the current price of ABC Corp is $95. How much is your option worth? (10 marks) (Total: 30 marks) Grand Total 100 Marks
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