Question: Show your work! 10. Write (short) a call option on Tesla stock with an exercise price of $270. The option expires after one month. Assume

Show your work! 10. Write (short) a call option on Tesla stock

Show your work!

10. Write (short) a call option on Tesla stock with an exercise price of $270. The option expires after one month. Assume the option premium is $20. a. What is the profit on this option if the stock price is $320 at expiration? b. What is the payoff of this option if the stock price is $245 at expiration 11. Write (short) a put option on Tesla stock with an exercise price of $270. The option expires after one month. Assume the option premium is $22. a. What is the profit on this option if the stock price is $300 at expiration? b. What is the payoff of this option if the stock price is $245 at expiration

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