Assume that you instead have shorted a call on the Intuit stock at a strike price of 36. The option will expire in exactly three months’ time.
Problem 1
If the stock is trading at 46 in three months, how much will you owe? State you answer rounded off to two decimal points.
Problem 2
If the stock is trading at 32 in three months, how much will you owe? State you answer rounded off to two decimal points.
Problem 3
Dynamic Energy Systems stock is currently trading for 32 per share. The stock pays no dividends. A one-year European put option on Dynamic with a strike price of 41 is currently trading for 9.18. If the risk-free rate of interest is 10% per year, what is the price of a one-year European call option on Dynamic with a strike price of 41? State you answer rounded to two decimal points.