Are the profits and losses limited or unlimited for this transaction? ayoff Diagram for Buyer (long)...

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Are the profits and losses limited or unlimited for this transaction? ayoff Diagram for Buyer (long) and Seller (short) of Put Optio Profit Diagram for Buyer (long) and Seller (short) of Put Option 1.2 $1 $1 Buyer Buyer Seller -Seller $1 0.8 0.6 0.4 0.2 0 17 $1 $0 50 $0 50 $0 A 17 17 10 A 17 15 Strike Price $60.00 Option Premium $5.00 Will the Call Payoff Schedule Profit Schedule Stock Price Be Exercised? Buyer Seller Buyer Seller $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 A B 1 Assumptions are in the green boxes. 2 Enter your calculations in the blue boxes. 3 E F G H I 5 Question #3 - Payoffs and Profits for a Forward Contract 6 7 8 Contract Price $50.00 9 10 11 12 Payoff Schedule 13 Stock Price Buyer Seller 15 $0 -$50 $50 16 $10 -$40 $40 17 $20 -$30 $30 18 $30 -$20 $20 19 $40 -$10 $10 20 $50 $0 $0 21 $60 $10 -$10 22 $70 $20 -$20 23 $80 $30 -$30 24 $90 $40 -$40 25 $100 $50 -$50 26 $110 $60 -$60 27 $120 $70 -$70 28 $130 $80 -$80 29 $140 $90 -$90 30 $150 $100 -$100 31 32 33 34 35 36 37 Are the profits and losses limited or unlimited for this transaction? ev are unlimited, since the stock price has no upper bour 38 39 40 41 ayoff Diagram for Buyer (long) and Seller (short) of Forward Contra $150 42 43 44 45 46 $100 47 48 49 $50 50 51 52 $0 53 54 $10 $20 $50 55 -$50 56 57 Bu yer 58 -$100 59 Seller 60 61 62 -$150 63 64 65 66 67 68 $60 $90 $100 $110 $120 $130 $140 $150 Are the profits and losses limited or unlimited for this transaction? ayoff Diagram for Buyer (long) and Seller (short) of Put Optio Profit Diagram for Buyer (long) and Seller (short) of Put Option 1.2 $1 $1 Buyer Buyer Seller -Seller $1 0.8 0.6 0.4 0.2 0 17 $1 $0 50 $0 50 $0 A 17 17 10 A 17 15 Strike Price $60.00 Option Premium $5.00 Will the Call Payoff Schedule Profit Schedule Stock Price Be Exercised? Buyer Seller Buyer Seller $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 A B 1 Assumptions are in the green boxes. 2 Enter your calculations in the blue boxes. 3 E F G H I 5 Question #3 - Payoffs and Profits for a Forward Contract 6 7 8 Contract Price $50.00 9 10 11 12 Payoff Schedule 13 Stock Price Buyer Seller 15 $0 -$50 $50 16 $10 -$40 $40 17 $20 -$30 $30 18 $30 -$20 $20 19 $40 -$10 $10 20 $50 $0 $0 21 $60 $10 -$10 22 $70 $20 -$20 23 $80 $30 -$30 24 $90 $40 -$40 25 $100 $50 -$50 26 $110 $60 -$60 27 $120 $70 -$70 28 $130 $80 -$80 29 $140 $90 -$90 30 $150 $100 -$100 31 32 33 34 35 36 37 Are the profits and losses limited or unlimited for this transaction? ev are unlimited, since the stock price has no upper bour 38 39 40 41 ayoff Diagram for Buyer (long) and Seller (short) of Forward Contra $150 42 43 44 45 46 $100 47 48 49 $50 50 51 52 $0 53 54 $10 $20 $50 55 -$50 56 57 Bu yer 58 -$100 59 Seller 60 61 62 -$150 63 64 65 66 67 68 $60 $90 $100 $110 $120 $130 $140 $150