portfolio

The common stock of Sophia Enterprises serves as the underlying asset for the following derivative securities: (1) forward contracts, (2)

European-style call options, and (3) Europeanstyle put options.

a. Assuming that all Sophia derivatives expire at the same date in the future, complete a table similar to the following for each of the

following contract positions:

(1) A long position in a forward with a contract price of $50

(2) A long position in a call option with an exercise price of $50 and a front-end premium expense of $5.20

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