4. For questions 4.a and 4.b, 1) evaluate the profit/loss of the given option position using the spot prices at expiration provided and il) determine the break-even price. Remember to consider 100 shares/option contract a. Long 2 IBM (IBM) 180 puts with May expiration, purchased at $2.01/share. Spot @ $170 $180 $190 expiration Profit/Loss +$1,598 Per contract = [-Premium + Max/Strike-Spot,0))*100 P/L2 IBM 180 puts @ $170/share = (-$2.01 + Max($180-$170,0))*100*2 = (-$2.01 + $10]*100*2 = ($7.99]*100*2 = $1,598 $60 b. Short 2 Facebook (FB) 52 calls with May expiration, sold for $2.80/share. Spot @ $45 $53 expiration Profit/Loss