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Use the following information to answer Questions 1 to 1 3 : Current market price of ABC stock = $ 7 7 ABC stock price
Use the following information to answer Questions to :
Current market price of ABC stock $
ABC stock price after days $
ABC stock price after days $
ABC stock price after days $
ABC stock price after days $
ABC stock price after days $
Current price of European call on ABC stock with exercise price of $ with days to expiration $
Current price of European put on ABC stock with exercise price of $ with days to expiration $
Riskfree rate
The payoff to the put option holder on Day is closest to:
A Zero
B $
C$
The payoff to the call option holder on Day is closest to:
A Zero
B $
C $
The payoff to the put option writer on Day is closest to:
A Zero
B$
C $
The payoff to the call option writer on Day is closest to:
A Zero
B $
C$
The put option holder's profit on his position is closest to:
A$
B $
C$
The call option holder's profit on his overall position is closest to:
A Zero
B $
C$
At current prices, the call option is most likely:
A Inthemoney
B Atthemoney
C Outofthemoney
At the put option is most likely:
A Inthemoney
B Atthemoney
C Outofthemoney
Most of the call option premium is most likely composed of:
A Intrinsic value
B Time value
C Cannot be determined
Most of the put option premium is most likely composed of:
A Intrinsic value
B Time value
C Cannot be determined
The price of a European call option with an exercise price of $ and days remaining expiration would be closest to:
A $
B $
C $
At the minimum value of the call option is closest to:
A $
B $
C $
At the minimum value of the put option is closest to:
A $
B $
C $
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