# Question

A put is the option to sell stock at $50. It expires after three months and currently sells for $3 when the price of the stock is $52.

a. If an investor buys this put, what will the profit be after three months if the price of the stock is $55? $50? $45?

b. What will be the profit from selling this put after three months if the price of the stock is $55? $50? $35?

a. If an investor buys this put, what will the profit be after three months if the price of the stock is $55? $50? $45?

b. What will be the profit from selling this put after three months if the price of the stock is $55? $50? $35?

## Answer to relevant Questions

Barbara buys 100 shares of DEM at $35 a share and 200 shares of GOP at $40 a share. She buys on margin and the broker charges interest of 10 percent on the loan. a. If the margin requirement is 55 percent, what is the ...You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 10 years. Your twin sister does the same starting at age 30 and makes the contributions for 30 ...An investment offers to pay you $10,000 a year for five years. If it costs $33,520, what will be your rate of return on the investment? The price of a stock is $39, and a six-month call with a strike price of $35 sells for $8. a. What is the option's intrinsic value? b. What is the option's time premium? c. If the price of the stock rises, what happens to ...The futures price of corn is $3.40 a bushel. Futures contracts for corn are based on 10,000 bushels, and the margin requirement is $2,000 a contract. You expect the price of corn to fall and sell the contract short. a. What ...Post your question

0