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There are two investment options below. Investment Alternative 1: John buys shares of ATT of 52$ for long position for call option and also, he

  1. There are two investment options below.

Investment Alternative 1: John buys shares of ATT of 52$ for long position for call option and also, he buys shares of BBT of 60$ for short position for call option. He buys BBT short position for 3$. Calculate daily profit/loss for hare of ATT.

Day

1.

2.

3.

4.

5.

6.

Price ($)

45

48

51

55

62

65

Investment Alternative 2: Betty buys shares of CCT of 45$ for long position for call option and also, she buys shares of CCT of 49$ for short position for call option. She buys CCT short position for 4$. Calculate daily profit/loss for hare of CCT.

Day

1.

2.

3.

4.

5.

6.

Price ($)

45

50

53

55

65

68

Do you think, which of the two different investments more profitable end of the sixth day? Why?

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