Question: Question 5 5.56 pts Answer questions 4 and 5 based upon the following information: Price of call option on a share of Company A's stock
Question 5 5.56 pts Answer questions 4 and 5 based upon the following information: Price of call option on a share of Company A's stock = $5 Strike price of call option = $39 Time to expiry of call option = 1 year Price of put option on a share of Company A's stock = $2 Strike price of put option = $35 Time to expiry of put option = 1 year If you want to hedge the future sale (selling at the end of the year) of a share of Company A's stock then the minimum effective revenue from selling a share of Company A's stock, taking into account the cost of the option, is 544 $33 $34 $37
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