Consider the following positions on the Intel stock. For each of the positions choose the strike X = $45. Choose January option.

a. Long 1 call contract.

b. Short 1 put.

c. Long 1 call + short 1 put.

d. Long 1 call + long 1 put.

e. Long 1 call with strike $45 and short 1 call with strike $46.

Assume that you enter and close the positions at the mid point of bid-ask spread.

For each position (a-e) answer the following questions. Assume that you trade each contract on Nov 1 (i.e. enter the positions).

1. Close out your positions on Nov 8. Calculate your net dollar gain or loss.

2. Now assume that you exercise options on Nov 8. 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 Nov 8 clearly, as well as your gain or loss.

November 1 INTC (INTEL CORP) 45.785 +0.295 Last Mty Puts Last Open TCi71543 E 2.97 +0.13 2.95 3.002 3497 17 Dec 43.00 INTC1715X43.E 0.39-0.05 0.38 0.73 20 2137 1.98 0.0 2.19 2.230 12061 17 Dec 44.00 INTC1715X44-E 0.60 0.14 0.53 0.62 20 2740 1.57 0.19 1.54 1.58 223 15703 17 Dec 45.00 INTC1715X45E 1.02 0.14 0.97 1.00 2086 1.07 0.10 1.03 1.07 32 6939 17 Dec 46.00 INTC1715X46E 1.41 0.29 1.45 1.49 21 819 3.43 0.20 3.35 3.503 3388 18 Jan 43.00 INTC1819M43 E 0.78 0.00.68 0.72 1277 2.44 0.0 2.62 2.68 0 5860 8 Ja 44.00 INTC1819M44-E 0.94 0.17 0.96 1.00 10 2365 2.07 0.19 2.00 2.053 32063 18 Jan 45.00 INTC1819M45 E 1.47 0.036 140 0 4589 1.43 0.0 1.48 1.5801753 18 Jan 46.00 INTC1819M46E 1.92 0.1 184 1.89 5 860 alls Net BidAsk Vol Open Intwatur Net Bid Ask Vol 231 e 410 INTCTISL L1 71.0 November 1 INTC (INTEL CORP) 45.785 +0.295 Last Mty Puts Last Open TCi71543 E 2.97 +0.13 2.95 3.002 3497 17 Dec 43.00 INTC1715X43.E 0.39-0.05 0.38 0.73 20 2137 1.98 0.0 2.19 2.230 12061 17 Dec 44.00 INTC1715X44-E 0.60 0.14 0.53 0.62 20 2740 1.57 0.19 1.54 1.58 223 15703 17 Dec 45.00 INTC1715X45E 1.02 0.14 0.97 1.00 2086 1.07 0.10 1.03 1.07 32 6939 17 Dec 46.00 INTC1715X46E 1.41 0.29 1.45 1.49 21 819 3.43 0.20 3.35 3.503 3388 18 Jan 43.00 INTC1819M43 E 0.78 0.00.68 0.72 1277 2.44 0.0 2.62 2.68 0 5860 8 Ja 44.00 INTC1819M44-E 0.94 0.17 0.96 1.00 10 2365 2.07 0.19 2.00 2.053 32063 18 Jan 45.00 INTC1819M45 E 1.47 0.036 140 0 4589 1.43 0.0 1.48 1.5801753 18 Jan 46.00 INTC1819M46E 1.92 0.1 184 1.89 5 860 alls Net BidAsk Vol Open Intwatur Net Bid Ask Vol 231 e 410 INTCTISL L1 71.0