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The questions are in the screenshot. Thank you! [[1 1. Assume the following table gives current market prices for XYZ stock and various XYZ options.

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The questions are in the screenshot. Thank you!

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[[1 1. Assume the following table gives current market prices for XYZ stock and various XYZ options. XYZ Stock 52 Interest rate 6.00% Option maturity 2 months QPTIQN PRIQES Strike @ P_|1t 45 7.50 0.05 50 4.25 0.75 55 0.75 3.25 a. Compute the intrinsic value and time value for (one or two of) these options. h. Draw the payo' diagram for a covered call position (i.e., sell one call, buy one share of stock) using the 50 strike call. i. Is the position bullish, or bearish? Is it aggressive, or defensive? ii. What is the standstill return on this position? iii. Suppose the stock ends up at 51 on expiration date. What is your return as an annualized percentage rate? c. Suppose you had a covered call position using the 55 strike call. i. What is the standstill return? ii. What is the if-called return? iii. Suppose the stock ends up at 60 on expiration date. What is your return as an annualized percentage rate? Other simple option positions are possible for this question in place of the covered call (e.g., protective put, call spread, straddle, etc.)

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