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vestor purchased a call option that allows her to purchase 200 shares of on common stock for $1500 per share any time during the next

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vestor purchased a call option that allows her to purchase 200 shares of on common stock for $1500 per share any time during the next three months. The premium she paid for the option was $25 per share, or $5000 total, and the Problems 26.An in Amaz current market price of Amazon's stock is $1520. a/ [3 pts] If the price of Amazon increases to $1550 and the investor decides to exercise it, what wil be the gain or loss that results from the option position that was held? Ignore taxes and commissions. b/ (3 pts] If the price of Amazon increases to $1550 and the investor decides NOT to exercise it, what will be the gain or loss that results from the option position that was held and the cost of the bet? Ignore taxes and commissions. 26. An investor purchased a put option that allows her to sell 300 shares of BestBuy common stock for $75 per share any time during the next six months. The price she paid for the option was $2.50 per share, or $750 total, and the current market price of BestBuy's stock is $74. a/ 13 pts] If the price of BestBuy decreases to $65 and the investor decides to exercise it, what will be the gain or loss that results from the option position that was held? Ignore taxes and commissions. Page 6 of 8

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