Given the Following Information

question 72

Essay

Given the following information,
      Price of a stock                  $50
      Strike price of a six-month call  $45
      Market price of the call           $9
Finish the following sentences:

a. The intrinsic value of the call is _________.
b. The time premium paid for the call is ________.

c. If an investor established a covered call position, the amount invested is _________.

d. The most the buyer of the call can lose is ________.

e. The maximum amount the seller of the call naked can lose is ________.

f. Which call is "in" or "out" of the money?

After six months (i.e., at the expiration date of the call), the price of the stock is $52.

g. The profit (loss)from buying the call is ________.

h. The price (loss)from selling the call naked is _______.

i. The profit (loss)from selling the call covered is     __________.

j. The profit (loss)from selling the stock short six months earlier is _________.

k. At expiration, the time premium paid for a put or a call is _________.

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Definitions:

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Effective political parties are those that successfully mobilize support, participate meaningfully in policymaking, and contribute to the functioning of a democratic political system.

Citizen Participation

The involvement of individuals in the political, economic, or social processes that affect their lives.

Social Media Logic

Social media logic pertains to the principles and processes through which social media platforms operate and influence users' creation, dissemination, and consumption of content.

Programmability

The ability to program or schedule operations, often relevant in contexts such as digital platforms where content can be orchestrated.