45 strike call on a stock. The options both expire in six months. The price of t

Question

45 strike call on a stock. The options both expire in six months. The price of the put is 50 and 12. Matthew writes a 35 strike put and a the price of the call is 1.00. The continuous interest rate is 4%, what is Matthew's maximum profit? 1.44 1.47 1.50 1.53 There is no maximun 13. A bond is selling for $900 immediately after a coupon is paid. It has annual S65 coupons and the effective rate of interest is 8%. Construct a bond table for the next 2 years. Indicate whether it is a write up or write down,

Explanation / Answer

12. In call option investor earn profit when stock price is above strike price and in put option investor earn profit when strike price is higher than stock price. the stock price can go up unlimited so in this case he can excercise the option and does not excercise put option and he can earn unlimited profit.

So, option (D) is correct answer.

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