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Question
given the following information,
price of a stock $50
strike price of a six-month call $45
market price of the call $9
finish the following sentences:
b. the time premium paid for the call is ________.
c. if an investor established a covered call position, the amount invested is _________.
d. the most the buyer of the call can lose is ________.
e. the maximum amount the seller of the call naked can lose is ________.
f. which call is "in" or "out" of the money?
after six months (i.e., at the expiration date of the call),
the price of the stock is $52.
g. the profit (loss) from buying the call is ________.
h. the price (loss) from selling the call naked is _______.
i. the profit (loss) from selling the call covered is __________.
j. the profit (loss) from selling the stock short six months earlier is _________.
Answer
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