(3 pts) Consider a June 2020 Put option contract on CC Co. with an exercise...

90.2K

Verified Solution

Question

Finance

  1. (3 pts) Consider a June 2020 Put option contract on CC Co. with an exercise price of $40 and a premium of $3.30.
    1. If on the third Friday of June the price of CC is as follows, fill in the chart below as is relates to the buyer of the contract.

Price in June Value of Option Contract Profit/Loss for Buyer

$30 ______________ _______________

$39 ______________ _______________

$48 ______________ _______________

  1. (3 pts) Consider a June 2020 Put option contract on DD Co. with an exercise price of $50 and a premium of $4.70.
    1. If on the third Friday of June the price of DD is as follows, fill in the chart below as is relates to the writer of the contract.

Price in June Value of Option Contract Profit/Loss for writer

$41 ______________ _______________

$47 ______________ _______________

$56 ______________ _______________

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students