Call options and put options

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Reference no: EM131993041

Call Options.

1) What would you earn when you exercise a call option that you bought for a premium of $2 per share and a strike price of $50 per share, if the price of the underlying stock was $47 per share on the option's expiration date?

Put Options

2) What would you earn on a put option with a strike price of $20 per share if the underlying stock was elling for $15 per share on expiration day? Assume the premium you paid on this put option was $1 per share.

Reference no: EM131993041

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