Both a call and put currently are traded on stock XYZ; both have strike prices of $50 and maturities of six months. a. What will be the profit to an investor who buys the call for $4 in the following scenarios for stock prices in six months? (i) $40; (ii) $45; (iii) $50; (iv) $55; (v) $60. b. What will be the profit in each scenario to an investor who buys the put for $6?

The opportunity cost of going to the movies is raising exam grade by 10 points.

Explanation:

Opportunity cost for doing something is what you have to give up for it, so in this case the opportunity cost of going to the movies will be what we are giving up for it. In this scenario we are giving up studying 3 hours and raising our exam grade b y 10 points so the opportunity cost of going to the movies is raising exam grade by 10 points.