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Author Question: Draw the profit diagram for a short position in a call option on shares of Callahan Auto Parts. ... (Read 150 times)

audragclark

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on: Apr 25, 2021

Question 1

Draw the profit diagram for a long position in a put option with a put premium of $2 and an exercise price of $35. What is the break-even stock price?
◦ $31
◦ $33
◦ $35
◦ $37

Question 2

Draw the profit diagram for a short position in a call option on shares of Callahan Auto Parts. Assume that the option is for one share of Callahan. The strike price for the option is $75. The option premium, today, is $5.00. The option expires in 3 months. The stock price for Callahan is currently $68. What is the maximum loss for the option position?
◦ $5
◦ $68
◦ $75
◦ Infinite
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by audragclark on Apr 25, 2021

milbourne11

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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audragclark

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Reply 2 on: Apr 25, 2021
Excellent

adf223

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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