Question: Both a call and a put currently are traded on stock XYZ; both have strike prices of $49 and maturities of six months. Assume 100

Both a call and a put currently are traded on stock XYZ; both have strike prices of $49 and maturities of six months. Assume 100 shares. a. What will be the profit/loss to an investor who buys the call for $4.25 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.) Answer is complete but not entirely correct. Stock Price $ 39 a b. $ 44 Profit/Loss $ (14.25) $ (9.25) $ (4.25) S 0.75 $ 5.75 C $ 49 d $ 54 $ 59 b. What will be the profit/loss in each scenario to an investor who buys the put for $7.10? (Loss amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Stock Price 39 a s b. $ 44 Profit/Loss $ (17.10) $ (12.10) $ (7.10) $ (2.10) c $ 49 $ d 54 e. $ $ 59 $ 2.90 X
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