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An investors buys a option on call option? Stock sells for s yahoo with an...

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An investors buys a option on call option? Stock sells for s yahoo with an exercise price of $46.00 maturing in March for $2.50. Yahoo stocks sells for $46.25 in March when the option matures. Would this investor exercise this call option? No Yes Not Sure What is net cash flow to the investor in Q. 10 above if she exercises the option? $46.00 $48.50 $2.50 4.28 1.56 An investors buys a put option on Yahoo with an exercise price of $40.00 maturing in March for $2.50. What is the stock price level that would put her in a profitable position? $37.00 $38.00 $43.00 $42.50 $40.00

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