We have 10000 common shares of procter and gamble each of, Ask an Expert

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We have 10,000 common shares of Procter and Gamble, each of which we bought for $38. The premium is $1.5, and the strike price is $45 per share. Expound on the results, in two different cases. In the first case, the market price rises to $60, and in the second case it falls to $38. Compute the rate of return for both the seller and the buyer of the P&G call option considering that this is a NAKED call.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91645849

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