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6. Referring to Figure 20.1 in your textbook Investments (Bodie, Kane, Marcus,11th Edition). This table lists prices of various IBM options. Calculate the option value
6. Referring to Figure 20.1 in your textbook Investments (Bodie, Kane, Marcus,11th Edition). This table lists prices of various IBM options. Calculate the option value (the option payoff) at expiration AND the profits/(losses) for investments in each of the following July 2016 expiration options, assuming that the stock price on the expiration date on July 15, 2016, is $150. You can use the data in Figure 20.1 if it helps you. In the chart below, X is the Strike (exercise price) and Last is the cost of the most recent option premium price on the date you want to buy/sell options. Last Cost Option Value Profit/Loss Call option, X=$145 $5.18 Put option, X=$145 $0.48 Call option, X=$150 $1.85 Put option, X=$150 $1.81 Call option, X=$155 $0.79 Put option, X=$155 $5.95 b. c. f
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