Question: Answer questions 4 and 5 based upon the following information: Price of call option on a share of Company A's stock Strike price of call

 Answer questions 4 and 5 based upon the following information: Price

Answer questions 4 and 5 based upon the following information: Price of call option on a share of Company A's stock Strike price of call option Time to expiry of call option Price of put option on a share of Company A's stock Strike price of put option Time to expiry of put option 1 year $2 -$39 I year If you want to hedge the future purchase (buying at the end of the year) of a share of Company A's stock then the maximum effective cost of buying a share of Company A's stock, taking into account the cost of the option, is Q 4. . S48 b$41 CS38 d. $37 If you want to hedge the future sale (selling at the end of the year) of a share of Company A's stock then the minimum effective revenue from selling a share of Company A's stock, taking into account the cost of the option, is 05. a. $48 b. $41 CS38 d. S37

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