Question: 2) Consider the following example: K = $75, UA = $95, and c = $18. In this case, what is the long call's P&L? 10)
2) Consider the following example: K = $75, UA = $95, and c = $18. In this case, what is the long call's P&L? 10) Consider a call option with a strike price of $50 and premium of $6. At what underlying asset price does the long call position breakeven? 11) Consider a portfolio consisting of five long forwards with forward price of $40 and twelve long calls with strike price of $22 and premium of $4. The underlying asset price is $35 at expiration. What is the portfolio's profit? 12) If the strike price is $50, the premium is $5, and the underlying asset price is $35 what is the long put's payoff
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