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Assignment - In calculating net profit, be sure to include...

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4. In Mid-May, there are two outstanding call option contracts available on the stock of Hilltop, Inc. Call # Exercise Price Expiration Date Market Price 1 $40 19-Aug $6.40 2 $50 20-Aug $2.25 a Assuming that you form a portfolio consisting of one Call #1 held long and two Calls #2 held short, complete the following table showing your intermediate steps.
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Unformatted text preview: In calculating net profit, be sure to include the net initial cost of the options. Price of Hiltop Stock At Expiration($) Profit on call #1 Position Profit on Call #2 Position Net Profit on Total Position 30 35 40 45 50 55 60 65...
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