Reference no: EM131177419
Given the following information, price of a stock $103 strike price of a six-month call $102 market price of the call $6 strike price of a six-month put $102 market price of the put $5 answer the following sentences.
b. What is the time premium paid for the put? Round your answer to the nearest dollar. $
c. If an investor establishes a naked call position, what amount is received? Round your answer to the nearest dollar. $
d. What is the most the buyer of the call can lose? Round your answer to the nearest dollar. $
At the expiration of the options (i.e., after six months have elapsed), the price of the stock is $95.
f. What is the profit (loss) from buying the stock? Round your answer to the nearest dollar. $_____?
g. What is the profit (loss) from buying the call? Round your answer to the nearest dollar. $______?
h. What is the profit (loss) from writing the call covered? Round your answer to the nearest dollar is $___?
i. What is the profit (loss) from selling the put? Round your answer to the nearest dollar. $___?
j. At expiration, what time premium is paid for the call? Round your answer to the nearest dollar. $___?
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