C. HSBC Call option: option price 3, strike price 44. Calculate the profit from selling a call option on one HSBC share if the terminalprice is 39.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Splve question c
A. Google Cal: option price =D3, strike price 100. Calculate the profit from buying a call option on one Google
share if the terminal price is 110
B. Boeing Put: option price =5, strike price 190. Calculate the profit from buying a put option on one Boeing share if
the terminal price is 210.
C HSBC Call option: option price 3, strike price 44. Calculate the profit from selling a call option on one ISBC share
if the terminal price is 39.
D. Glaxo Put option: option price 25, strike price 1385. Calculate the profit from sellinga put option on one Glaxo
share if the terminal price is 1400
Transcribed Image Text:A. Google Cal: option price =D3, strike price 100. Calculate the profit from buying a call option on one Google share if the terminal price is 110 B. Boeing Put: option price =5, strike price 190. Calculate the profit from buying a put option on one Boeing share if the terminal price is 210. C HSBC Call option: option price 3, strike price 44. Calculate the profit from selling a call option on one ISBC share if the terminal price is 39. D. Glaxo Put option: option price 25, strike price 1385. Calculate the profit from sellinga put option on one Glaxo share if the terminal price is 1400
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