please answer 16 and 17 Canvas Question 16 & 17 are based on the following infor

Question

please answer 16 and 17

Canvas Question 16 & 17 are based on the following information: What would be the proceeds to an investor who purchases the September 2011 expiration IBM calls with exercise price $165 if the stock price at option expiration is $150 $5.00 $0 $0150 1 pts DQuestion 17 Questions 16 & 17 are based on the following information: What would be the proceeds to an investor who purchases the September 2011 expiration 1BM calls with exercise price $165 if the stock price at option expiration is $150? If the call premium is $5.80 then what is the net proft? -$5.80 $5.80 O-$10.80

Explanation / Answer

16)

proceeds to the investor

=max(150-165,0)

=0

17)

net profit=max(150-165,0)-call premium

=0-5.80

=-5.80

the above is answer..

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