12. You shorted a call option on Intuit stock with a strike price of $32. When you sold (wrote) the option, you received

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12 You Shorted A Call Option On Intuit Stock With A Strike Price Of 32 When You Sold Wrote The Option You Received 1 (115.29 KiB) Viewed 15 times

12. You shorted a call option on Intuit stock with a strike price of $32. When you sold (wrote) the option, you received $7. The option will expire in exactly three months' time. a. If the stock is trading at $48 in three months, what will your payoff be? What will your profit be? b. If the stock is trading at $29 in three months, what will your payoff be? What will your profit be? c. Draw a payoff diagram showing the payoff 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 short is $ a. The payoff of the short is $ (Round to the nearest dollar.) b. The payoff of the short is $ (Round to the nearest dollar.) c. Choose the correct diagram below. O A. OC. O A. Value of the Short (S) O C. 55 of the Short ( a Profit of the Short (S) 20 103 Profit of the Short ($) -10- -20 20 10- -20 d. Choose the correct diagram below. 20- 10² -10- 20 10- -10 10 20 30 40 50 60 -20 Stock Price at Expiration ($) 10 20 30 40 50 60 Stock Price at Expiration ($) 10 20 30 50 60 Stock Price at Expiration ($) 10 20 30 40 50 60 Stock Price at Expiration ($) and the profit of the short is $ Q Q Q OB. O D. O B. O D. SA 10- -10- Profit of the Short ($) Profit of the Short (S) -10 -20- 10- -10- 10- 10 20 30 40 50 60 70 80 Stock Price at Expiration ($) 10 20 30 40 50 60 Stock Price at Expiration ($) 10 20 30 40 50 60 Stock Price at Expiration ($) 10 20 30 40 50 60 70 80 Stock Price at Expiration ($) Q Q Q Q Q Q Q