A put and a call have the following terms:

Call: strike price             $50
             expiration date   six months
Put:  strike price             $50
             expiration date   six months

The price of the stock is currently $55. The price of the call and put are, respectively, $9 and $1. What will be the profit from buying the call or buying the put if, after six months, the price of the stock is $40, $50, or $60?

Question

A put and a call have the following terms: 
 
 Call: strike price             $50 
             expiration date   six months 
Put:  strike price             $50 
             expiration date   six months 
 
The price of the stock is currently $55. The price of the call and put are, respectively, $9 and $1. What will be the profit from buying the call or buying the put if, after six months, the price of the stock is $40, $50, or $60?

Quizplus · Accepted Answer

The Answer of A put and a call have the following terms: 
 
 Call: strike price             $50 
             expiration date   six months 
Put:  strike price             $50 
             expiration date   six months 
 
The price of the stock is currently $55. The price of the call and put are, respectively, $9 and $1. What will be the profit from buying the call or buying the put if, after six months, the price of the stock is $40, $50, or $60?

A Put and a Call Have the Following Terms