A put is the option to sell stock at $54. It expires after three months and currently sells for $2 when the price of the stock is $55. If an investor buys this put, what will the profit be after three months if the price of the stock is $60? $54? $48? Round your answers to the nearest dollar. Use a minus sign to enter loss values, if any. If the answer is zero, enter "0".   Price of the stock Profit on the position in the put $60 $   $54 $   $48 $     What will be the profit from selling this put after three months if the price of the stock is $60? $54? $48? Round your answers to the nearest dollar. Use a minus sign to enter loss values, if any. If the answer is zero, enter "0".   Price of the stock Profit on the position in the put $60 $   $54 $   $48 $

Assume that you hold a call option on stock A. The call has a strike price of 50 and expires in 6 months. Stock A pays no dividends. 1. What is the payoff from the call if stock A is trading at 57 in 6 months? 2. What is the payoff from the call if stock A is trading at 45 in 6 months? 3. Draw a payoff diagram that shows the payoff of the call as a function of the underlying stock price.

Assume that you have shorted a call option on Intuit stock with a strike price of $40. The option will expire in exactly three months' time. a. If the stock is trading at $55 in three months, what will you owe? b. If the stock is trading at $35 in three months, what will you owe? c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration. a. If the stock is trading at $55 in three months, what will you owe? If the stock is trading at $55 in three months, you will owe $ (Round to the nearest dollar.)

The price of a stock is $58, and a six-month call with a strike price of $55 sells for $5. Round your answers to the nearest dollar. What is the option's intrinsic value? $   What is the option's time premium? $   If the price of the stock falls, what happens to the price of the call? As the price of the stock falls, the value of the call  . If the price of the stock falls to $50, what is the maximum you could lose from buying the call? Enter your answer as a positive value. $   What is the maximum profit you could earn by selling the call covered? $   If, at the expiration of the call, the price of the stock is $65, what is the profit (or loss) from buying the call? Enter your answer as a positive value. The  from buying the call is $   . If, at the expiration of the call, the price of the stock is $65, what is the profit (or loss) from selling the call covered? Enter your answer as a positive value. The  from selling the call covered is $   . If, at the expiration of the…

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? Maximum profit

You write a put with a strike price of $60 on stock that you have shorted at $60 (this is a “covered put”). What are the expiration date profits to this position for stock prices of $50, $55, $60, $65, and $70 if the put premium is $1.80? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)     Stock price Short profit Put payoff Put profit Net profit $50.00         $55.00         $60.00         $65.00         $70.00

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? (Loss amount should be indicated by a minus sign.) Maximum profit Maximum loss $ GAGA

You shorted a call option on Intuit stock with a strike price of $38. When you sold (wrote) the option, you received $3. The option will expire in exactly three months' time. a. If the stock is trading at $49 in three months, what will your payoff be? What will your profit be? b. If the stock is trading at $35 in three months, what will your payoff be? What will your profit be? c. Draw a payoff diagram showing the payoff at expiration as a function of the stock price at expiration. d. Redo c, but instead of showing payoffs, show profits. Question content area bottom Part 1 a. The payoff of the short is $ short is $ enter your response here. enter your response here, and the profit of the.   Please step by step answer.

You obtain the following information concerning a stock and a put option Price of the stock $42 Strike price $40 Price of the put $3 Expiration date three months You want to purchase the stock but also want to use an option to reduce your risk of loss. a) What is the cash inflow or outflow from your position when you purchase your put option? c) What is the total profit or loss if the price of the stock stagnates and trades for $42 after three months? d) What is the total profit or loss if the price of the stock trades for $50 after three months? e) What is the total profit or loss if the price of the stock trades for $30 after three months?

The price of Newgen Corp. stock will be either $94 or $103 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 7.90%. (Do not leave any empty spaces; input a O wherever it is required. Omit "$" sign in your response.) a. Suppose the current price of Newgen stock is $104. What is the value of the call option if the exercise price is $94 per share? (Round the final answer to 2 decimal places.) Call option value b. Suppose the exercise price is $109 in part (a). What is the value of the call option now? Call option value