a.
net profit per share
=max(53-55,0)-0.80
=0-0.80=-0.80
b.
net profit per share
=max(53-50,0)-0.80
=3-0.80=2.20
the above is answer..
You have purchased a put option on Pfizer common stock. The option has an exercise price...
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You have taken a long position in a call option on IBM common stock. The option has an exercise price of $148 and IBM's stock currently trades at $153. The option premium is $7 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit on the option if IBM’s stock price increases to $163 at expiration of the option and you exercise the option? c. What is...