Question: UOW FIN222 Tutorial 7 Workshop Question 2 - Word Tell me what you want to do aw Design Layout References Mailings Review View Help

UOW FIN222 Tutorial 7 Workshop Question 2 - Word Tell me what you want to do aw Design Layout References Mailings Review View Help + Skywater Flow SF 8. The spot price for Google stock is $578 on June 6. A trader considers two alternatives: buy 100 shares of the stock, or buy 100 European call options on Google for $38 each with a strike price of $575 and maturity date of September 2018. For each alternative, what is: a) the upfront cost? b) the total gain if the stock price at maturity is $650? c) the total loss if the stock price is $500 at maturity? a) Upfront cost Buy 100 shares Buy 100 call options b) Gain if P=$650 c) Loss if P=$500 2 English (Australia) o search 2 hp 26C Mostly cloudy E

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