Assume today is 30 June 2023, Protege plc's shares are traded at $84.5 per share. You...
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Assume today is 30 June 2023, Protege plc's shares are traded at $84.5 per share. You have the following information about the 3-month call and put options on Protege plc's share: ● European call option: Strike price = $82, premium = $2.86 European put option: Strike price = $82, premium = $0.96 Assume at the expiry date of both option types, the market price of Protege plc's stock is $80 per share. Required: X a) Calculate the payoffs to long and short positions on the CALL options, commenting upon your results. [5 marks] b) Calculate the payoffs to long and short positions on the PUT options, commenting upon your results. [5 marks] Assume today is 30 June 2023, Protege plc's shares are traded at $84.5 per share. You have the following information about the 3-month call and put options on Protege plc's share: ● European call option: Strike price = $82, premium = $2.86 European put option: Strike price = $82, premium = $0.96 Assume at the expiry date of both option types, the market price of Protege plc's stock is $80 per share. Required: X a) Calculate the payoffs to long and short positions on the CALL options, commenting upon your results. [5 marks] b) Calculate the payoffs to long and short positions on the PUT options, commenting upon your results. [5 marks]
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a Payoffs for Long and Short Positions on the Call Options For a long position on a call option the ... View the full answer
Related Book For
The Legal and Regulatory Environment of Business
ISBN: 978-0078023859
17th edition
Authors: Marisa Pagnattaro, Daniel Cahoy, Manning Magid, Lee Reed, Pe
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