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Sladkaya [172]
3 years ago
11

"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon

ey), the gain or loss is:"
Business
1 answer:
steposvetlana [31]3 years ago
7 0

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

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