Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tony buys an OTM call for $3.8 at the $145 strike when XYZ stock is at $140. The stock is at $148 at the expiration
Tony buys an OTM call for $3.8 at the $145 strike when XYZ stock is at $140. The stock is at $148 at the expiration of his call option. How much profit/loss has he realized? $3.80loss$3.50profit$1.80profit$.80profit Liz sells a naked put for $2 at the $145 strike when XYZ is trading at $155. How much would the option be worth if the stock is at $15 at expiration? $7.8$8.0$2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started