What will be the profit and loss to an investor

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Reference no: EM131980855

Both a call and a put currently are traded on stock XYZ; both have strike prices of $43 and maturities of six months.

1. What will be the profit/loss to an investor who buys the call for $4.20 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Stock Price Profit/Loss per share

a. $33

b. 38

c. 43

d. 48

e. 53

2. What will be the profit/loss in each scenario to an investor who buys the put for $7.70? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss per share

a. $33

b. 38

c. 43

d. 48

e. 53

Reference no: EM131980855

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