Finance Questions 89

Question Description

9. What is the difference between a put and a call options? When would you be likely to want to write each? When would you be like to want to sell each? Be sure to explain why.

10. What will be he proceeds and net profits to an investor who purchases the July expiration Dell calls with an exercise price of $245 if the stock price at expiration is $260? What if the stock price is $195? Suppose the premium is $7.54. Draw the payoff graphs for the buyer and writer.

11. Suppose the previous problem had instructed you to purchase a put with the same exercise price and premium? What would the proceeds and profit be at stock price of $260 and $195? Draw the payoff graphs for buyer and writer.

12. Clearly and completely discuss the difference between risk averse, risk neutral and risk lover.

Posted in Uncategorized

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount