Question: Question 3 2 pts A put option on Tesla with expiration in June 2022 and strike price of $400 is selling for a premium of
Question 3 2 pts A put option on Tesla with expiration in June 2022 and strike price of $400 is selling for a premium of $7 per share. What is the profit for the holder of the option if the stock price at expiration is 248. Question 4 2 pts Suppose you think WW stock is going to appreciate substantially in value over the next six months. The stock's current price is $20 and the call option expiring in six months has an exercise price, X, of $30 and is selling at a premium (option price), C, of $12. You invest $12,000 on 1,000 options (10 contracts, each for 100 shares). What is the rate of return if the stock price six months from now is $50? Show your work
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