Calculate payoff at expiration for call

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Reference no: EM131881134

1. What should be the value of a call, given the following information? Exercise price: $45 for European put and call options

Time to expiry: 115 days

Underlying stock price = $48

Annual risk free rate = 4.5% Put is selling for $3.75

A. $8.00 B. $3.77 C. $7.37 D. $7.77

2. Calculate the payoff at expiration for a call, and a put option on the S&P 100 stock index in which the underlying price is $579.32 at expiration, the multiplier is 100, and the exercise price is $450

A. (Call, Put): ($12,932, $0)

B. (Call, Put): ($7,068, $0)

C. (Call, Put): ($0, $12,932)

D. (Call, Put): ($0, $7,068)

Reference no: EM131881134

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