You own a call option on Intuit stock with strike price of $44. The option will...
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You own a call option on Intuit stock with strike price of $44. The option will expire in exactly three months' time. a. If the stock is trading at $52 in three months, what will be the payoff of the call? b. If the stock is trading at $39 in three months, what is the value of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. a. If the stock is trading at $52 in three months, what will be the payoff of the call? If the stock is trading at $52 in three months, the payoff of the call will be $ b. If the stock is trading at $39 in three months, what is the value of the call? If the stock is trading at $39 in three months, the payoff of the call will be $ (Round to the nearest dollar.) (Round to the nearest dollar.) You own a call option on Intuit stock with strike price of $44. The option will expire in exactly three months' time. a. If the stock is trading at $52 in three months, what will be the payoff of the call? b. If the stock is trading at $39 in three months, what is the value of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. a. If the stock is trading at $52 in three months, what will be the payoff of the call? If the stock is trading at $52 in three months, the payoff of the call will be $ b. If the stock is trading at $39 in three months, what is the value of the call? If the stock is trading at $39 in three months, the payoff of the call will be $ (Round to the nearest dollar.) (Round to the nearest dollar.)
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Pay off in call Trading price of the stock Strike price or exercise price but if the Trading price i... View the full answer
Related Book For
Essentials of Business Communication
ISBN: 978-1111821227
9th edition
Authors: Mary Ellen Guffey, Dana Loewy
Posted Date:
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