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The following option prices were observed for a stock for July 6 of a particular year. Use this information in questions 4 - 6. The
The following option prices were observed for a stock for July 6 of a particular year. Use this information in questions 4 - 6. The stock is priced at $165.13/ share (non-dividend). The expirations are August 21 and October 16 and the continuously compounded interest rates are 5.35\% and 5.71%, respectively. (Interest rate is given for the duration of each option contract so you don't need to count days) The options are European. In the following problems, determine the profits for possible stock prices of 150,155,160,165,170,175, and 180 . Answer any other questions as requested. Question 6 (5 Points) Short 100 shares of stock and buy one October 170 call contract. Hold the position until expiration. Determine the profits and graph the results. Identify the breakeven stock price at expiration, the maximum profits, and the maximum loss
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