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 _______.

---

Definitions:

Third Party

A third party is an individual or entity who is not directly involved in a legal agreement or dispute but may be affected by it or have rights or obligations related to it.

Improper Person

An individual deemed unsuitable or unqualified under certain criteria or regulations.

Criminal

Pertaining to or involving crimes, describing actions that are against the law.

Liability

A financial obligation or amount that an individual or entity owes to another.