1. You are short on a call with an exercise price of $50. What is the value of the call at Maturity? If the call premium at the time you shorted it was $3. What is your profit or loss on the position? Use Stock prices of $40, $45, $50, $55, and $60. In addition to calculating the number, please show graphically the value of the short position in the call and your profit and loss. 2. You are long in a put option with an exercise price of $60. What is the value of the put at Maturity? If the put premium at the time of purchase was $4, what is your profit or loss on the position? Use stock prices of 45, 50, 60, 65, and 70. 3. On Friday 3/8/2024 JP Morgan Chase stock closed at $188.22, the March 22, 2024 Put closed at $2.08, and the Call closed at $3.25. The exercise price is $187.50. Show using a 5% risk-free rate and a 2-weeks time to maturity for the options that the Put-Call Parity holds. 

What should be done if the Call above was trading at $6.25, everything else is the same?

Answer rating: 100% (QA)

1 Value of the Short Call at Maturity To calculate the value of the short call at maturity we need to compare the stock price with the exercise price Exercise price 50 Stock prices 40 45 50 55 60 At m... View the full answer