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1. On June 28,2017, Starbucks stock was trading at S59.05. The following quotes were available for SBUX options Expiration Exercise Calls Puts July July August
1. On June 28,2017, Starbucks stock was trading at S59.05. The following quotes were available for SBUX options Expiration Exercise Calls Puts July July August August August Price 58.50 0.670.15 59.000.350.20 59.001.541.42 60.001.051.89 61.000.701.95 a) Which put options are in the money? Which call options are in the money? b) What is the exercise value of a July $59 call option? c) Suppose you buy 10 contracts of the August S60.00 call option. How many total dollars will you pay, ignoring commissions? d) In part (c) suppose that SBUX stock is selling for $67 per share on the expiration date. How much is your profit/loss? What if the stock price is S58? e) Suppose you buy 5 contracts of the July $58.50 put option. What is your maximum loss
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