In: Finance
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 | ||