2. Use the table below to answer the following questions for an Amazon option Expiration Feb-23...
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2. Use the table below to answer the following questions for an Amazon option Expiration Feb-23 Feb-23 Feb-23 Strike Call Premium Put Premium 110 $ 4.50 $ 115 $ 2.55 $ 120 $ 1.34 $ 4.35 7.55 11.20 a. If you buy the call option with a $115 Strike price do you exercise the call if AMZN stock is at 117? Why or why not? If you do, what is the profit. b. What if you bought a put with a strike of 120 (Assume the stock price is still $117) c. What if you bought a call with a strike of 110 (Assume the stock price is still $117) 2. Use the table below to answer the following questions for an Amazon option Expiration Feb-23 Feb-23 Feb-23 Strike Call Premium Put Premium 110 $ 4.50 $ 115 $ 2.55 $ 120 $ 1.34 $ 4.35 7.55 11.20 a. If you buy the call option with a $115 Strike price do you exercise the call if AMZN stock is at 117? Why or why not? If you do, what is the profit. b. What if you bought a put with a strike of 120 (Assume the stock price is still $117) c. What if you bought a call with a strike of 110 (Assume the stock price is still $117)
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a If you buy the call option with a 115 strike price and the Amazon stock is at 117 you would exerci... View the full answer
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
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