Question: (3 pts) Consider a June 2020 Put option contract on CC Co. with an exercise price of $40 and a premium of $3.30. If on

  1. (3 pts) Consider a June 2020 Put option contract on CC Co. with an exercise price of $40 and a premium of $3.30.
    1. If on the third Friday of June the price of CC is as follows, fill in the chart below as is relates to the buyer of the contract.

Price in June Value of Option Contract Profit/Loss for Buyer

$30 ______________ _______________

$39 ______________ _______________

$48 ______________ _______________

  1. (3 pts) Consider a June 2020 Put option contract on DD Co. with an exercise price of $50 and a premium of $4.70.
    1. If on the third Friday of June the price of DD is as follows, fill in the chart below as is relates to the writer of the contract.

Price in June Value of Option Contract Profit/Loss for writer

$41 ______________ _______________

$47 ______________ _______________

$56 ______________ _______________

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