Profit/Loss Assignment | Homework For You |

Problem 2-29
Both a call and a put currently are traded on stock XYZ; both have strike prices of \$54 and maturities of six months.

a.
What will be the profit/loss to an investor who buys the call for \$4.40 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Stock Price
Profit/Loss
a.
\$44
\$
b.
49

c.
54

d.
59

e.
64

b.
What will be the profit/loss in each scenario to an investor who buys the put for \$6.40? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Stock Price
Profit/Loss
a.
\$44
\$
b.
49

c.
54

d.
59

e.
64

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Profit/Loss Assignment | Homework For You |

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Profit/Loss Assignment | Homework For You |

Problem 2-29
Both a call and a put currently are traded on stock XYZ; both have strike prices of \$54 and maturities of six months.

a.
What will be the profit/loss to an investor who buys the call for \$4.40 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Stock Price
Profit/Loss
a.
\$44
\$
b.
49

c.
54

d.
59

e.
64

b.
What will be the profit/loss in each scenario to an investor who buys the put for \$6.40? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Stock Price
Profit/Loss
a.
\$44
\$
b.
49

c.
54

d.
59

e.
64

Get Finance homework help today