Question

Options trade on the common stock of Taz, Inc. that have a strike price of $50.00 and a premium of $2.50. In each of the next four parts, calculate the net profit (or loss) on the option position, where net profit includes the premium in the calculation. Note: Negative responses should be placed with a preceding negative sign (e.g. -4.50) and not with parentheses (e.g. (4.50)). Part 1: Calculate the net profit or loss from BUYING a CALL option on Taz if at the time of expiration the price per share of Taz is $52.75. $ Part 2: Calculate the net profit or loss from WRITING a CALL option on Taz if at the time of expiration the price per share of Taz is $52.75. $ Part 3: Calcuate the net profit or loss from BUYING a PUT option on Taz if at the time of expiration the price per share of Taz is $52.75. $ Part 4: Calcuate the net profit or loss from WRITING a PUT option on Taz if at the time of expiration the price per share of Taz is $52.75. $

Answer 1

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Answer 2

THIS COPIED FROM MY SOLUTION. THIS IS MY EXCEL FILE