Consider the following positions on the Intel stock. For each of the positions choose the strike X $=$ $$42.$ Choose June option.

a$.$ Short $1$ call.

b$.$ Short $1$ put.

Assume that you enter and close the positions at the midpoint of the bid$-$ask spread. Assume that you trade each contract on March $15($i$.$e$.$ enter the positions$).$ For each position $($a$-$b$)$ answer the following questions:

$1.$ Close out your positions on March $22.$ Calculate your net dollar gain or loss.

$2.$ Now assume that you exercise options on March $22.$ For each position compute your net gain or loss.

$3.$ For each position draw the payoff diagram, marking the strikes and the stock price on March $22$ clearly, as well as your payoff March $15,2024$

INTC $($INTEL CORP$)$

$42\mathrm{.}7,0\mathrm{.}0$

$\backslash$table$[[$Calls$,\backslash$table$[[$Last$],[$Sale$]],$Net,Bid,Ask,Vol,Open Int,$\backslash$table$[[$Maturity$],[$Strike$]],$Puts,$\backslash$table$[[$Last$],[$Sale$]],$Net,Bid,Ask,Vol,Open Int$],[,4\mathrm{.}17,+0\mathrm{.}145,3\mathrm{.}95,4\mathrm{.}3,36,631,2441\mathrm{.}00,,1\mathrm{.}97,-0\mathrm{.}09,2\mathrm{.}04,2\mathrm{.}07,834,3387],[,3\mathrm{.}6,+0\mathrm{.}125,3\mathrm{.}4,3\mathrm{.}5,102,2853,24$ May $42\mathrm{.}00,,2\mathrm{.}42,-0\mathrm{.}09,2\mathrm{.}49,2\mathrm{.}52,712,5965],[,2\mathrm{.}98,-0\mathrm{.}03,2\mathrm{.}97,2\mathrm{.}99,295,3320,2443\mathrm{.}00,,2\mathrm{.}93,-0\mathrm{.}095,2\mathrm{.}99,3\mathrm{.}05,680,8080],[,2\mathrm{.}55,-0\mathrm{.}005,2\mathrm{.}54,2\mathrm{.}57,273,11079,24$ May $44\mathrm{.}00,,3\mathrm{.}45,-0\mathrm{.}125,3\mathrm{.}55,3\mathrm{.}65,56,4475],[,4\mathrm{.}8,+0\mathrm{.}2,4\mathrm{.}55,4\mathrm{.}65,5,2003,24$ Jun $41\mathrm{.}00,,2\mathrm{.}4,-0\mathrm{.}07,2\mathrm{.}44,2\mathrm{.}46,23,6336],[,4\mathrm{.}16,+0\mathrm{.}085,4\mathrm{.}0,4\mathrm{.}1,20,8924,24$ Jun $42\mathrm{.}00,,2\mathrm{.}87,-0\mathrm{.}06,2\mathrm{.}89,2\mathrm{.}92,67,10803],[,3\mathrm{.}65,+0\mathrm{.}05,3\mathrm{.}5,3\mathrm{.}6,229,3797,24$ Jun $43\mathrm{.}00,,3\mathrm{.}36,-0\mathrm{.}09,3\mathrm{.}4,3\mathrm{.}5,30,3302],[,3\mathrm{.}23,+0\mathrm{.}08,3\mathrm{.}1,3\mathrm{.}15,14,2876,24$ Jun $44\mathrm{.}00,,3\mathrm{.}91,-0\mathrm{.}09,3\mathrm{.}95,4\mathrm{.}05,50,6052]]$

March $22,2024$

INTC $($INTEL CORP$)$

$42\mathrm{.}48,0\mathrm{.}0$

$\backslash$table$[[$Calls$,\backslash$table$[[$Last$],[$Sale$]],$Net,Bid,Ask,Vol,Open Int,$\backslash$table$[[$Maturity$],[$Strike$]],$Puts,$\backslash$table$[[$Last$],[$Sale$]],$Net,Bid,Ask,Vol,Open Int$],[,3\mathrm{.}6,-0\mathrm{.}125,3\mathrm{.}65,3\mathrm{.}75,16,798,2441\mathrm{.}00,,1\mathrm{.}85,-0\mathrm{.}11,1\mathrm{.}87,1\mathrm{.}91,148,4373],[,3\mathrm{.}15,-0\mathrm{.}025,3\mathrm{.}1,3\mathrm{.}2,196,3111,2442\mathrm{.}00,,2\mathrm{.}36,-0\mathrm{.}055,2\mathrm{.}32,2\mathrm{.}36,648,6475],[,2\mathrm{.}66,-0\mathrm{.}04,2\mathrm{.}63,2\mathrm{.}67,640,3440,2443\mathrm{.}00,,2\mathrm{.}85,-0\mathrm{.}08,2\mathrm{.}83,2\mathrm{.}88,472,8555],[,2\mathrm{.}2,-0\mathrm{.}08,2\mathrm{.}21,2\mathrm{.}24,222,11553,24$y $44\mathrm{.}00,,3\mathrm{.}45,-0\mathrm{.}075,3\mathrm{.}4,3\mathrm{.}45,145,4506],[,4\mathrm{.}3,+0\mathrm{.}025,4\mathrm{.}2,4\mathrm{.}35,41,2020,24$ Jun $41\mathrm{.}00,,2\mathrm{.}35,+0\mathrm{.}01,2\mathrm{.}28,2\mathrm{.}31,75,6413],[,3\mathrm{.}7,-0\mathrm{.}05,3\mathrm{.}7,3\mathrm{.}8,129,8965,24$ Jun $42\mathrm{.}00,,2\mathrm{.}78,-0\mathrm{.}025,2\mathrm{.}74,2\mathrm{.}77,1525,10840],[,3\mathrm{.}25,-0\mathrm{.}025,3\mathrm{.}2,3\mathrm{.}3,1582,4046,24$ Jun $43\mathrm{.}00,,3\mathrm{.}3,-0\mathrm{.}025,3\mathrm{.}2,3\mathrm{.}3,39,3795],[,2\mathrm{.}8,-0\mathrm{.}03,2\mathrm{.}79,2\mathrm{.}83,36,2707,24$ Jun $44\mathrm{.}00,,3\mathrm{.}9,+0\mathrm{.}025,3\mathrm{.}8,3\mathrm{.}85,2,6175]]$