# a. The call seller receives \$21.50 for writing the call. If the stock price at expiration is…

a. The call seller receives \$21.50 for writing the call. If the stock price at expiration is \$740, the call expires valueless and the investor keeps the entire \$21.50 as a profit. If the stock price is \$890, the value of the call at expiration is \$890 − \$800 = \$90. In other words, the call seller must deliver a stock worth \$890 for an exercise price of only \$800. The investor’s net profit is negative at \$21.50 − \$90 = −\$68.50. The call seller makes a loss whenever the value of the call at expiration is more than the initial premium received for writing the option. In other words, he loses if the stock price is above \$800 + \$21.50 = \$821.50. b. The put seller receives \$84.00 for writing the put. If the stock price at expiration is \$740, the final value of the put is \$800 − \$740 = \$60. In other words, the put seller must pay an exercise price of \$800 for a stock worth only \$740. The investor’s net profit is \$84.00 − \$60 = \$24.00. If the stock price is \$890, the put expires valueless and the put seller keeps the entire \$84.00 as a profit. The put seller makes a loss when the value of the put at expiration is greater than the initial premium received for writing the option. In other words, he loses if the stock price is below \$800 − \$84 = \$716.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.