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You purchase one SDB $125 strike price call contract (equaling 100 shares) for a premium of...

  1. You purchase one SDB $125 strike price call contract (equaling 100 shares) for a premium of $5. You hold the option until the expiration date, when SDB stock sells for $123 per share. What will be your payoff at expiry? What will be your profit/loss?
  2. You write one SDB $120 strike price put contract (equaling 100 shares) for a premium of $4. You hold the option until the expiration date, when SDB stock sells for $121 per share. What will be your payoff at expiry? What will be your profit/loss?
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