Question: Do not use Excel Problem 60.6 Consider a call option (whose underlying asset is a stock index) with strike price of $1000 and expiration date

Do not use Excel

Problem 60.6 Consider a call option (whose underlying asset is a stock index) with strike price of $1000 and expiration date in six months. Suppose the risk-free 6month interest rate is 2% and the call premium is $93.81 60 CALL OPTIONS: PAYOFF AND PROFIT DIAGRAMS 575 (a) What the future value of the premium? (b) What is the buyer's profit if the spot price at the expiration date is $1100 ? (c) What if the spot price at the expiration date is $900

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