d. What is the profitt or loss when stock price is $60 at maturity e. Suppose you have this options position, should you exercise your right (if any) assuming that the stock price is $60 at

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Financial risk management 

please answer question d and e only

atemat=3106448.cmld%=5880228.pagt
Trans ate
Course Hero
Peraph asing Tecl
I Turnitin - ass Port
CHone Cama
Rea
a. Name of options payoff
5.00
b. Identify whether positive or negative premium
on
c. Identify break-even point
d. What is the profitt or loss when stock price is $60 at maturity
Suppose you have this options position, should you exercise your right (if any) assuming that the stock price is $60 at
maturity?
Option Payoffs and Profits
$40
Long call
$20
Profit +$20
$0
Break-even point +$45
Option Payoff
Option Profit
Exercise Price
Premium -$5
-$20
Ishould exercise my right
-$440
so
$20
$40
$60
$80
Stock Price At Maturity
Long put
Short put
Short call
Premium +$5
Payoff and Profit
Transcribed Image Text:atemat=3106448.cmld%=5880228.pagt Trans ate Course Hero Peraph asing Tecl I Turnitin - ass Port CHone Cama Rea a. Name of options payoff 5.00 b. Identify whether positive or negative premium on c. Identify break-even point d. What is the profitt or loss when stock price is $60 at maturity Suppose you have this options position, should you exercise your right (if any) assuming that the stock price is $60 at maturity? Option Payoffs and Profits $40 Long call $20 Profit +$20 $0 Break-even point +$45 Option Payoff Option Profit Exercise Price Premium -$5 -$20 Ishould exercise my right -$440 so $20 $40 $60 $80 Stock Price At Maturity Long put Short put Short call Premium +$5 Payoff and Profit
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