What is the value of george option

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Sally has a call option on one share of Ultra with a strike price of $40 and a call option on one share of Boone with a strike price of $25. George has a call option on a portfolio that has one share of Ultra and one share of Boone. The strike price on George's call option is $65. These options are all expiring today.

a. If Ultra is selling for $50 and Boone for $15, what is the value of Sally's options? What is the value of George's option?

b. If Ultra is selling for $30 and Boone for $35, what is the value of Sally's options? What is the value of George's option?

c. If Ultra is selling for $45 and Boone for $35, what is the value of Sally's options? What is the value of George's option?

Reference no: EM132404600

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