Consider the following option quotations on General Electric common stock.

Calls Puts

Strike

Option Price Dec Mar June Dec Mar June

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Gen. Elec. 55 8 9 9 1/16 5/16 1/2

54 60 3 2 4 ^5/8 5 ^5/8 5/16 1 1

54 65 9/16 1 ^3/4 2 ^3/4 2 3/4 3 4

a. Based on information given, how many different contracts could you trade?

b. Suppose you buy the June call with exercise price of $55, calculate the value of the call and your net profit or loss at the expiration date if market prices are $50, $60 and $70.

c. If you also had the opportunity to buy the June /65 put, calculate the value of the put and your net profit or loss if market prices are $50, $60 and $70 at expiration date.