Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80 strike and 90 days to maturity is quoted at $4.40. Compare the percentage gains and losses from a $35,200 investment in the stock versus the option in 90 days for stock prices of $70, $80, and $90. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" and select "None" wherever required. Input all amounts as positive values.) $ 70 $ 80 $ 90 Options % gain/loss 30,800.00 Loss 35,200.00 None 39,600.00 Gain Stock % gain/loss (12.50) Loss 0 None 12.50 Gain
Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80 strike and 90 days to maturity is quoted at $4.40. Compare the percentage gains and losses from a $35,200 investment in the stock versus the option in 90 days for stock prices of $70, $80, and $90. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" and select "None" wherever required. Input all amounts as positive values.) $ 70 $ 80 $ 90 Options % gain/loss 30,800.00 Loss 35,200.00 None 39,600.00 Gain Stock % gain/loss (12.50) Loss 0 None 12.50 Gain
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
Problem 1PS
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Transcribed Image Text:Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80 strike and 90 days to maturity is
quoted at $4.40. Compare the percentage gains and losses from a $35,200 investment in the stock versus the option in 90 days for
stock prices of $70, $80, and $90. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal
places. Leave no cells blank - be certain to enter "0" and select "None" wherever required. Input all amounts as positive values.)
$
$
$
70
80
90
Options % gain/loss
30,800.00 Loss
35,200.00 None
39,600.00 Gain
Stock % gain/loss
(12.50) Loss
0 None
12.50 Gain
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