Below is a list of quoted prices for options on Apple Inc. (NASDAQ: AAPL). The current stock price is $182.15 (November 8, 2023).

Suppose an investor bought 100 shares of the stock at $196 per share in July and is still holding the position. The investor wants to trade options to maximize his gain or manage risk.

A. Why are the prices of put options with strike prices between $185 and $215 more expensive than the other options on the list?

B. If the investor sells 15 call option contracts with a strike price of $180, how much are the sale proceeds from the option contract today? Note that 1 option contract trades 100 shares.

C. Suppose the investor purchases 1 put option contract. The put option with a strike price of $175 is selling for $3.02 now and will expire in January. Draw the profit diagram for the combined position (long stock and long put) and discuss the maximum gain or loss on per share basis.

Calls January 19, 2024 Puts Last Price Change \% Change Volume Open Interest Strike Last Price Change % Change Volume Open Interest \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline 44.25 & +0.45 & +1.03% & 10 & 14,038 & 140.00 & 0.25 & -0.02 & 7.41% & 70 & 42,284 \\ \hline 39.30 & +0.38 & +0.98% & 5 & 12,284 & 145.00 & 0.33 & -0.03 & 8.33% & 332 & 28,187 \\ \hline 34.05 & +0.30 & +0.89% & 39 & 29,525 & 150.00 & 0.46 & -0.04 & 8.00% & 262 & 46,902 \\ \hline 29.50 & +0.40 & +1.37% & 16 & 11,075 & 155.00 & 0.63 & -0.06 & 8.70% & 324 & 32,606 \\ \hline 24.60 & +0.15 & +0.61% & 88 & 23,369 & 160.00 & 0.90 & -0.08 & 8.16% & 397 & 45,983 \\ \hline 20.67 & +0.64 & +3.20% & 108 & 17,744 & 165.00 & 1.36 & -0.09 & 6.21% & 876 & 43,575 \\ \hline 16.25 & +0.45 & +2.85% & 213 & 35,443 & 170.00 & 2.03 & -0.12 & 5.58% & 779 & 54,593 \\ \hline 12.10 & +0.20 & +1.68% & 1,260 & 65,571 & 175.00 & 3.02 & -0.23 & 7.08% & 1,435 & 69,628 \\ \hline 8.48 & +0.03 & +0.36% & 1,771 & 73,757 & 180.00 & 4.50 & -0.27 & 5.66% & 7,557 & 70,429 \\ \hline 5.55 & +0.05 & +0.91% & 1,078 & 52,598 & 185.00 & 6.65 & -0.25 & 3.62% & 1,514 & 22,763 \\ \hline 3.30 & 0.00 & - & 4,316 & 61,853 & 190.00 & 9.45 & -0.55 & 5.50% & 40 & 34,926 \\ \hline 1.73 & -0.06 & 3.35% & 2,261 & 61,559 & 195.00 & 13.35 & -0.10 & 0.74% & 59 & 12,465 \\ \hline 0.88 & 0.00 & - & 4,668 & 75,145 & 200.00 & 17.49 & -0.39 & 2.18% & 12 & 1,426 \\ \hline 0.41 & -0.04 & 8.89% & 623 & 51,355 & 205.00 & 23.75 & 0.00 & - & 60 & 76 \\ \hline 0.22 & -0.02 & 8.33% & 383 & 64,502 & 210.00 & 28.09 & 0.00 & - & 2 & 40 \\ \hline 0.14 & +0.01 & +7.69% & 64 & 63,383 & 215.00 & 47.20 & 0.00 & - & 1 & 4 \\ \hline \end{tabular}