Question
(3 pts) Consider a June 2020 Call option contract on AA Co. with an exercise price...
- (3 pts) Consider a June 2020 Call
option contract on AA Co. with an
exercise price of $40 that sells for $2.20.
- If on the third Friday of June (the expiration date) the price of AA is as follows, fill in the chart below as is relates to the buyer of the contract.
Price in June Value of Option Contract Profit/Loss for Buyer
$36 ______________ _______________
$42 ______________ _______________
$47 ______________ _______________
Homework Answers
Answer #1
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
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