Use the table below to answer the following questions for a February call option with...

50.1K

Verified Solution

Question

Finance

Use the table below to answer the following questions for a February call option with a strike of $95

Expiration Strike Call Put
Jan 18-2019 95 7.65 0.98
Jan 18-2019 100 3.81 2.20
Jan 18-2019 105 1.45 4.79
Feb 8-2019 95 9.50 2.86
Feb 8 2019 100 5.60 3.92
Feb 8 2019 105 3.08 6.35

a. If the stock price is $99, do you exercise the call? Why or why not? If you do, what is the profit?

b. What if you bought a January call with a strike of 100 (Assume the stock price is still $99)

c. What if you bought a January put with a strike of 100 (Assume the stock price is still $99)

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