Question
You buy a call with a strike price of $100 on stock that you have shorted at $100 (this is a protective call). What are
You buy a call with a strike price of $100 on stock that you have shorted at $100 (this is a protective call). What are the expiration date profits to this position for stock prices of $90, $95, $100, $105, and $110 if the call premium is $6.50? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your call profit and net profit answers to 2 decimal places and round your other answers to the nearest whole number.)
Stock Price Short Profit Call Payoff Call Profit Net Profit
$90 _________ _________ ________ ________
$95 _________ _________ ________ ________
$100 _________ _________ ________ ________
$105 _________ ________ ________ ________
$110 ________ ________ ________ ________
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Suppose you write 36 call option contracts with a $80 strike. The premium is $4.33. Evaluate your potential gains and losses at option expiration for stock prices of $70, $80, and $90. (Input all amounts as positive values. Do not round intermediate calculations.)
At stock price of $70, the _______ is _______
At stock price of $80, the _______ is _______
At stock price of $90, the _______ is _______
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