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A call option on Company Goodtimes common stock is worth $7 with 5 months before expiration....

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Finance

A call option on Company Goodtimes common stock is worth $7 with5 months before expiration. The strike price on the call is $35 andthe price per share is currently trading at $39 per share. The putoption at the same exercise price is worth $1.50. a. Is the calloption in or out or the money? b. Is the put option in or out ofthe money?c. If you bought both the put and call in 5. above andheld them both to expiration, calculate your loss or profit on boththe put and call if the price at expiration was $28 per share.

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Option can be standardized in following manners Call option Put option At the money Exercise Price Market Price Exercise Price Market Price In the money Exercise Price Market Price Exercise Price    See Answer
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