Given the Following Information

question 56

Essay

Given the following information,
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 _______.

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Definitions:

Diploid

A cell or organism that has two sets of chromosomes, one from each parent.

Bath Sponges

Natural or synthetic sponges used for cleansing the body; natural ones are harvested from the ocean and belong to a simple, multicellular organism group.

Silica

A hard, unreactive, colorless compound that occurs as the mineral quartz and as a principal constituent of sandstone and other rocks.

Calcium Carbonate

A chemical compound used as a dietary supplement or antacid; it's also the main component of limestone.