trade on the common stock of Taz, Inc. that have a strike price of $51.00 and a premium of $1.00. In each of the next four parts, calculate the net profit (or loss) on the option position.

Note: Negative responses should be placed with a preceding negative sign (e.g. -4.50) and not with parentheses (e.g. (4.50)).

Part 1: Calculate the net profit or loss from BUYING a CALL option on Taz if at the time of expiration the price per share of Taz is $52.75. $

Part 2: Calculate the net profit or loss from WRITING a CALL option on Taz if at the time of expiration the price per share of Taz is $52.75. $

Part 3: Calcuate the net profit or loss from BUYING a PUT option on Taz if at the time of expiration the price per share of Taz is $52.75. $

Part 4: Calcuate the net profit or loss from WRITING a PUT option on Taz if at the time of expiration the price per share of Taz is $52.75. $

Answer rating: 100% (QA)

Part 1 The net profit from buying a call option on Taz when the price per share of Taz is 5275 at ex... View the full answer