You buy a call option on ROCK stock with an exercise price of $104. Today, the stock’s price is $95. The premium on the

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answerhappygod
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You buy a call option on ROCK stock with an exercise price of $104. Today, the stock’s price is $95. The premium on the

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You buy a call option on ROCK stock with an exercise price of $104. Today, the stock’s price is $95. The premium on the call option is $3. Just before expiration, the stock’s price is $100. Will you exercise the option? What is your net profit or loss? What is the break-even price? (show your work
You sell a put option on ROLL stock with an exercise price of $97. Today, the stock’s price is $95. The premium on the put option is $2. Just before expiration, the stock’s price is $99. Will the option be exercised? What is your net profit or loss? What is the break-even price? (show your work)
What is the maximum potential gain from selling a put option? Explain.
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