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Both a call and a put currently are traded on stock XYZ; both have strike prices...

Both a call and a put currently are traded on stock XYZ; both have strike prices of $50 and maturities of six months.


a. What will be the profit/loss to an investor who buys the call for $4 in the following scenarios for stock prices in six months? (Loss amounts should be indicated by a minus sign.)

Stock Price   Profit/Loss
  a. $40 $
  b. $45
  c. $50
  d. $55
  e. $60

b. What will be the profit/loss in each scenario to an investor who buys the put for $6? (Loss amounts should be indicated by a minus sign.)

Stock Price   Profit/Loss
  a. $40 $
  b. $45
  c. $50
  d. $55
  e. $60
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