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Consider the MSFT option prices below (prices at closing on Mar 16, 2021). Microsoft current stock price is $239.18 Assume no dividends Expiry of options
Consider the MSFT option prices below (prices at closing on Mar 16, 2021).
- Microsoft current stock price is $239.18
- Assume no dividends
- Expiry of options March 18, 2022 (assume 365 days to expiration)
Calls (Expiration: 3/18/2022) Puts (Expiration 3/18/2022)
| Strike | Price | Intrinsic value | Implied Variance |
| Strike | Price | Intrinsic Value | Implied Variance |
| 230 | $32.50 |
|
|
| 230 | $26.00 |
|
|
| 250 | $23.00 |
|
|
| 250 | $33.72 |
|
|
- Explain a protective Put and a covered Call position, with examples using the above options.
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