Question: 2. Draw the contingency graph for the following options and find gain or loss for each scenario. a) Call buyer, exercise price -$1.44, premium -
2. Draw the contingency graph for the following options and find gain or loss for each scenario. a) Call buyer, exercise price -$1.44, premium - $.25 Scenario: the buyer exercises the call when the market price is $1.56. Find the buyer's gain or loss. b) Call seller, exercise price S1.06, premium S.08 Scenario: the buyer exercises the call when the market price is $1.10. Find the seller's gain or loss. c) Put buyer, exercise price-$1.22, premium - $0.12 Scenario: the buyer exercises the put when the market price is $1.13. Find the seller's gain or loss. d) Put seller, exercise price - $1.16, premium - $0.15 Scenario: the buyer does not exercise the put. Find the seller's gain or loss
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