Question
You own a call option on Intuit stock with a strike price of $38. The option will expire in exactly three months' time. a. If
You own a call option on Intuit stock with a strike price of $38. The option will expire in exactly three months' time.
a. If the stock is trading at $44 in three months, what will be the payoff of the call?
b. If the stock is trading at $27 in three months, what will be the payoff of the call?
c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.
PLEASE ANSWER A, B, & C
You own a call option on Intuit stock with a strike price of $38. The option will expire in exactly three months' time. a. If the stock is trading at $44 in three months, what will be the payoff of the call? b. If the stock is trading at $27 in three months, what will be the payoff of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. a. If the stock is trading at $44 in three months, what will be the payoff of the call? If the stock is trading at $44 in three months, the payoff of the call is $ (Round to the nearest dollar.)Step by Step Solution
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A Guide To Starting Your Hedge Fund
Authors: John Thompson, Erik Serrano Berntsen
1st Edition
0470519401, 978-0470519400
