What is your payoff and pro?t ifthe stock price goes down

Reference no: EM133371190

Question: Consider the following investment: you buy I share of the (£11 Option of GameCoelt stock at S] and I share of the Em Option of Gameka stock at $2 from Taylor Swift. The strike price for both the call option and the put option is $20.

( I} What is your payoff and pro?t ifthe stock price goes down to SI 5 at expiration? What is your return on this investment?

(2) Draw the stock price-your payoff and pro?t relationship on a graph (like those covered in class)

(3) What is Taylor Swift's pro?t in dollar terms if the stock price goes up to $22 at expiration?

{4} What is your maximum loss in dollar tennis?

Reference no: EM133371190

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