A call option has a strike price of 100 in dollars, and a time to expiration of 0.5 in years. If the stock is trading for 53 dollars, N(d1) = 0.5, N(d2) = 0.4, and the risk free rate is0.06, what is the value of the call option?
A short call option is sold for 1,300 dollars and covers 100 shares of Johnson Incorporated. If the Strike price of the option is 60, what is the break-even share price?
A put option covering 100 shares sells for 2,330. If the strike price of the put option is 70, what is the maximum loss for the put buyer?