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A) Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and the premium is $3. If, at expiration, the
A) Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and the premium is $3. If, at expiration, the stock is selling for $64 per share, what are your call options worth? What is your net profit?
B) Suppose you buy 50 April 100 call option contracts. How much will you pay, ignoring commissions?
| Calls | Puts | |||||
| Close | Strike Price | Expiration | Vol. | Last | Vol. | Last |
| Hendreeks | ||||||
| 103 | 100 | Feb | 72 | 5.20 | 50 | 2.40 |
| 103 | 100 | Mar | 41 | 8.40 | 29 | 4.90 |
| 103 | 100 | Apr | 16 | 10.68 | 10 | 6.60 |
| 103 | 100 | Jul | 8 | 14.30 | 2 | 10.10 |
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