2. What are the prices of a call option and a put option with the following characteristics? Stock price = $74Exercise price = $72Risk-free rate = 2.7% per year, compounded continuouslyMaturity = 4 monthsStandard deviation = 52% per year 3. Draw the payoff picture at expiration for a long position in a call option that has a premium of $1.25 and a strike price of $30. 4. Draw the payoff picture for a short position in the call option given in Problem 2.5. Draw the payoff picture at expiration for a long position in a put option that has a premium of $3.50 and a strike price of $80. 6. Draw the payoff picture for a short position in the put option given in Problem 4.please let me have it by mornin. Thank you.
2. What are the prices of a call option and a put option with the following characteristics?
Stock price = $74
Exercise price = $72
Risk-free rate = 2.7% per year, compounded continuously
Maturity = 4 months
Standard deviation = 52% per year
3. Draw the payoff picture at expiration for a long position in a call option that has a
premium of $1.25 and a strike price of $30.
4. Draw the payoff picture for a short position in the call option given in Problem 2.
5. Draw the payoff picture at expiration for a long position in a put option that has a
premium of $3.50 and a strike price of $80.
6. Draw the payoff picture for a short position in the put option given in Problem 4.
please let me have it by mornin. Thank you.
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