Question: Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and maturities of six months. Assume

Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and maturities of six months. Assume 100 shares. a. What will be the profit/loss to an investor who buys the call for $4.50 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.) Stock Price Profit/Loss a. $ 30 b. $ C. d. SSS 35 40 e. SA $ 45 50 b. What will be the profit/loss in each scenario to an investor who buys the put for $8.00? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss a. $ 30 b. $ 35 C. $ 40 d. S 45 e. $ 50

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