11. You own a call option on Intuit stock with a strike price of $38. When you purchased the option, it cost $6. The opt

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11 You Own A Call Option On Intuit Stock With A Strike Price Of 38 When You Purchased The Option It Cost 6 The Opt 1 (110.67 KiB) Viewed 9 times

11. You own a call option on Intuit stock with a strike price of $38. When you purchased the option, it cost $6. The option will expire in exactly three months' time. a. If the stock is trading at $50 in three months, what will be the payoff of the call? What will be the profit of the call? b. If the stock is trading at $31 in three months, what will be the payoff of the call? What will be the profit of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. d. Redo c, but instead of showing payoffs, show profits. , and the profit of the call is $ a. The payoff of the call is $ (Round to the nearest dollar.) b. The payoff of the call is $ (Round to the nearest dollar.) c. Choose the correct diagram below. O A OC. in O A. 3 O C. -10 10- d. Choose the correct diagram below. Profit of the Call ($) 20 €-10- -20 20- 10-1 H 10 20 30 50 60 Stock Price at Expiration (S) 10- 10 20 30 40 50 60 Stock Price at Expiration (S) -10- Stock Price at Expiration (S) and the profit of the call is $ 10 20 30 40 50 60 70 80 Stock Price at Expiration (5) Q Q 80 G 10 20 30 40 50 60 Q Q Q G O B. O D. O B. OD. $ -10- 20 10 -10- -20 -10- 20- 10- 20: -10- -20 10 20 30 40 50 60 Stock Price at Expiration (S) 10 20 30 40 50 60 Stock Price at Expiration (S) 30 20 30 40 60 70 80 Stock Price at Expiration (S) 10 20 30 40 50 60 Stock Price at Expiration (S) G Q