Question: Both a call and a put currently are traded on stock XYZ; both have strike prices of $58 and expirations of six months. Required: a.
Both a call and a put currently are traded on stock XYZ; both have strike prices of $58 and expirations of six months. Required: a. What will be the profit/loss to an investor who buys the call for $4.80 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 $ 48 53 $ $ $ $ $ 58 63 68 b. What will be the profit/loss in each scenario to an investor who buys the put for $6.80? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Stock Price Profit/Loss $ 48 53 $ 58 $ $ $ $ $ 63 68
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