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The price of a stock is $59, and a six-month call with a strike price of $58 sells for $3. Round your answers to the
The price of a stock is $59, and a six-month call with a strike price of $58 sells for $3. Round your answers to the nearest dollar
The price of a stock is $59, and a six-month call with a strike price of $58 sells for $3. Round your answers to the nearest dollar. a. What is the option's intrinsic value? $ b. What is the option's time premium? $ C. If the price of the stock falls, what happens to the price of the call? As the price of the stock falls, the value of the call -Select- d. If the price of the stock falls to $41, what is the maximum you could lose from buying the call? Enter your answer as a positive value. $ e. What is the maximum profit you could earn by selling the call covered? $ f. If, at the expiration of the call, the price of the stock is $63, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The -Select- V from buying the call is $ 9. If, at the expiration of the call, the price of the stock is $63, what is the profit (or loss) from selling the call covered? Enter your answer as a positive value. The -Select from selling the call covered is $ h. If, at the expiration of the call, the price of the stock is $43, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The -Select- from buying the call is $ i. If, at the expiration of the call, the price of the stock is $43, what is the profit (or loss) from selling the call covered? Enter your answer as a positive value. The -Select- from selling the call covered is $Step by Step Solution
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