please answer all the 3 sub parts Call PremiumPut PremiumStrikeOctOctAug$5.25Aug$4.75$165$8.1$6.75а.Buy one August 165 call contract. Hold it until the option expires. Determine the profitsand graph the results. Then identify the break-even stock price at expiration. What is themaximum possible loss on this transaction?b.Buy one August 165 put contract. Hold it until the option expires. Determine the profitsand graph the results. Then identify the break-even stock price at expiration. What is themaximum possible loss on this transaction?с.Short one October 165 put contract. Hold it until the option expires. Determine the profitsand graph the results. Identify the break-even stock price at expiration. What is themaximum gain and loss on this transaction?

Strike Price = $165 Aug Call Premium = $5.25 Oct Call Premium = $8.1 Aug Put Premium = $4.75 Oct Put…

Answered: Call Premium Put Premium Strike Oct Aug…

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter18: Derivatives And Risk Management

Section18.A: Valuation Of Put Options

Problem 1P

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