business fundamental 1

/in /by

  • A. Draw a profit/loss chart representing a long call (i.e. from the perspective of someone buying a call option). Here are the following details:
    • Company: Microsoft [MSFT]
    • Today’s Date: 4.1.19
    • Current Share Price: $120
    • Strike: $150
    • Premium: $15
    • Exercise Date: 1.1.20

B. Calculate the breakeven point and label it on your chart.

C. What is this investor’s position value today?

D. Would this investor be considered “bullish” or “bearish”? (Meaning, do they want the underlying stock price to go up or down?)