Question: Please remember, - Provide proper working for each problem. - Use proper numbering for each solution according to the questions. - Provide formulas where its
Please remember,
- Provide proper working for each problem.
- Use proper numbering for each solution according to the questions.
- Provide formulas where its necessary. If possible mark it down.
- Handwritten is preferred.

QUESTION 10 a. On the options market, both the call options and put options on Woolworths' shares currently have strike (or exercise) prices of $45.00 and maturities (or expiries) of four months. i. What will be the profit or loss per share to an investor who buys the call today for $3.00 per share under each of the following scenarios - that is, where the price of Woolworths' shares in four months is A. $40.00 B. $45.00 c. $50.00? What will be the profit or loss per share. In each of the above scenarios, to an Investor who buys the put today for $7.00 ii. . If Coles' shares are now selling at $16.00 each, why could a call option on those shares with an exercise price of $18.00 and expiring in six months, sell at a positive price? Explain, with the aid of a hypothetical example. c. What is the after-tax percentage return to an investor who buys shares in BHP Ltd a year ago for $35.00, receives a dividend of $1.75 yesterday and sells the shares for $38.85 today? The tax rate on both dividends and capital gains is 30%
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