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Self-test 1 feedback

25 November, 2015 - 14:30
  1. The net profit or loss per share to be earned by the writer of the call option is given by

    -max\left \{ S_{T} -X-c, \0 -c \right \}
    Assume the interest rate is negligible.
Assumed stock price at the time the call option is about to expire Net profit or loss per share to be earned by the writer (seller) of the call option
$37 $5
$39 $4
$41 $2
$43 $0
$45 -$2
$48 -$8
 
  1. The net profit or loss per share to be earned by the speculator:

    max \left \{ S_{T}-X-c, \0-c \right \}
    Assume the interest rate is negligible.
Assumed stock price at the time the call option is about to expire Net profit or loss per share to be earned by the speculator
$50 -$3
$52 -$3
$54 -$3
$56 -$2
$58 $0
$60 $2
$62 $4