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Question 6 4 pts Questions (A4-A6) are based on the information that follows: A particular...

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Question 6 4 pts Questions (A4-A6) are based on the information that follows: A particular stock trades at $42 per share and I own 5,000,000 shares. Call (put) options with a strike price of $40 trade at $3.48 ($0.34) per share respectively. The options are all of one year duration A6. Ms. Johnson (separate scenario) had shorted 10 million shares at the start of the year at $42 per share. She then hedged by using options. At the end of the year the stock trades at $30 per share. What is her net outcome on this gamble? What net profits or losses has she made in $ millions? (a) $85.2 (b) $68.7 (c) $105.9 (d) $948 le) $704 Previous

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