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Consider the following positions on the Intel stock. For each of the positions choose the strike X = $ 4 2 . Choose June option.

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)
42.7,0.0
\table[[Calls,\table[[Last],[Sale]],Net,Bid,Ask,Vol,Open Int,\table[[Maturity],[Strike]],Puts,\table[[Last],[Sale]],Net,Bid,Ask,Vol,Open Int],[,4.17,+0.145,3.95,4.3,36,631,2441.00,,1.97,-0.09,2.04,2.07,834,3387],[,3.6,+0.125,3.4,3.5,102,2853,24 May 42.00,,2.42,-0.09,2.49,2.52,712,5965],[,2.98,-0.03,2.97,2.99,295,3320,2443.00,,2.93,-0.095,2.99,3.05,680,8080],[,2.55,-0.005,2.54,2.57,273,11079,24 May 44.00,,3.45,-0.125,3.55,3.65,56,4475],[,4.8,+0.2,4.55,4.65,5,2003,24 Jun 41.00,,2.4,-0.07,2.44,2.46,23,6336],[,4.16,+0.085,4.0,4.1,20,8924,24 Jun 42.00,,2.87,-0.06,2.89,2.92,67,10803],[,3.65,+0.05,3.5,3.6,229,3797,24 Jun 43.00,,3.36,-0.09,3.4,3.5,30,3302],[,3.23,+0.08,3.1,3.15,14,2876,24 Jun 44.00,,3.91,-0.09,3.95,4.05,50,6052]]
March 22,2024
INTC (INTEL CORP)
42.48,0.0
\table[[Calls,\table[[Last],[Sale]],Net,Bid,Ask,Vol,Open Int,\table[[Maturity],[Strike]],Puts,\table[[Last],[Sale]],Net,Bid,Ask,Vol,Open Int],[,3.6,-0.125,3.65,3.75,16,798,2441.00,,1.85,-0.11,1.87,1.91,148,4373],[,3.15,-0.025,3.1,3.2,196,3111,2442.00,,2.36,-0.055,2.32,2.36,648,6475],[,2.66,-0.04,2.63,2.67,640,3440,2443.00,,2.85,-0.08,2.83,2.88,472,8555],[,2.2,-0.08,2.21,2.24,222,11553,24y 44.00,,3.45,-0.075,3.4,3.45,145,4506],[,4.3,+0.025,4.2,4.35,41,2020,24 Jun 41.00,,2.35,+0.01,2.28,2.31,75,6413],[,3.7,-0.05,3.7,3.8,129,8965,24 Jun 42.00,,2.78,-0.025,2.74,2.77,1525,10840],[,3.25,-0.025,3.2,3.3,1582,4046,24 Jun 43.00,,3.3,-0.025,3.2,3.3,39,3795],[,2.8,-0.03,2.79,2.83,36,2707,24 Jun 44.00,,3.9,+0.025,3.8,3.85,2,6175]]
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