Figure 15.1

Refer to Figure 15.1, which lists the prices of various Microsoft options. Each option allows you to buy or sell one share of the MSFT stock. Use the data in the figure to calculate the payoff and the profits for investments in each of the following June 2017 expiration options, assuming that the stock price on the expiration date is $71. (Leave no cells blank - be certain to enter "O" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss"to 2 decimal places.) Payoff Profit/Loss a. Call option, X = 70 b. Put option, X = 70 Microsoft (MSFT) Expiration Strike June 16, 2017 70 June 16, 2017 72 June 16, 2017 74 Underlying stock price = $71.75 Call Put 2.02 0.24 0.67 0.90 0.13 2.37 70 0.58 July 7, 2017 July 7, 2017 July 7, 2017 72 74 2.40 1.15 0.42 1.32 2.59