An investor brought 1000 GD company shares at the price of $100 on 8 th Jan 2022
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Question:
An investor brought 1000 GD company shares at the price of $100 on 8th Jan 2022 and wanted to hold them till the end of 2022. The option market offers the following options:
Prices at close January 8, 2022 | ||||||||
GD | Underlying stock price:$100 | |||||||
Call option | Put option | |||||||
Expiration | Strike | Last | Volume | Open interest | Last | Volume | Open Interest | |
Dec. 2022 | $80 | $30 | 23000 | 293520 | $10 | 13500 | 135890 | |
Dec. 2022 | $100 | $15 | 25000 | 143200 | $17 | 16200 | 189020 | |
Dec. 2022 | $130 | $5 | 18000 | 193210 | $45 | 12100 | 163451 |
what should the investor do and the possible outcome he will get if the investor wants to control the loss or make more profit from this investment.
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ISBN: 9780132752671
5th edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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