Answer a&b

Both a call and a put currently are traded on stock XYZ: both have strike prices of $49 and maturities of six months. a. What will be the profit/loss to an investor who buys the call for $4.25 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Profit loss Stock Price $ 39 a b $ 44 C $ 49 d $ 54 S 59 b. What will be the profit/loss in each scenario to an investor who buys the put for $710? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Profit Loss Stock Price S 39 a b $ 44 S d S $ 54 591 P