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1. Ignoring trading costs and taxes, what is the total profit or loss on each of...

1. Ignoring trading costs and taxes, what is the total profit or loss on each of the following investments?

a) You sold (wrote) three TXA call option contracts with a strike price of $35 when the option was quoted at $2.60. The option expires today when the value of TXA stock is $33.70.

b) You sold five put option contracts on QLN stock with an exercise price of $45 and an option price of $2.20. Today, the option expires and the underlying stock is selling for $38.65 a share.

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jeff jeffy answered 1 year ago
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