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The table below contains the current prices for calls and puts with various strike prices and a stock currently priced at $129. Todays Date Current
The table below contains the current prices for calls and puts with various strike prices and a stock currently priced at $129. Todays Date Current Stock Price (S.): Option expiration 3 month risk free rate: Call Premiums (Co) $ 11.00 $ 7.85 $ 5.25 10/10/2021 $ 129.00 1/10/2022 (Assume T = .25) 3.00% (quoted on an annualized basis) Strike Price (X) Put Premiums (Po) $ 125 $ 2.78 $ 130 $ 4.27 $ 135 $ 6.93 $ 2. Assume on expiration the stock trades at $132 (S1). Assume each option above had both a buyer and seller at the prices listed in the table on page 1. Given where the stock ended up trading at expiration, give me the payoff/payout and profit/loss for each trader on a per share basis. Do not factor in any interest earned or forgone. (KEEP IN MIND-DERIVATIVES DO NOT CREATE OR DESTRY WEALTH, THEY ARE JUST A TRANSFER OF RISK AND WEALTH...so the payout and profit/loss for the seller should be the opposite of the buyer.) Buyer Total Profit/Loss Seller Payout Payoff Total Profit/Loss $125 Call $125 Put $130 Call $130 Put $135 Call $135 Put
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