Answered You can hire a professional tutor to get the answer.
One month ago you purchased a put option on the SP500 index with an exercise price of $910 at $1.00. Today is the expiration date and the index is
One month ago you purchased a put option on the S&P500 index with an exercise
price of $910 at $1.00. Today is the expiration date and the index is at $900.96. Will
you exercise the option? What will be your pro¯t?
2. Suppose that you purchased a call option with a strike price of $30 and paid a premium
of $6.
(a) Draw a graph of your payoff and profit would be at expiration for stock prices in
the range of $10 to $70.
(b) Now assume that instead of buying the call you wrote the option. Draw a graph
of your payoff and profitt would be from this perspective.
