Question
Figure: prices of stock options on Microsoft on January 2, 2019. For example: $7.65 is the price for a call with a strike of $95.
Figure: prices of stock options on Microsoft on January 2, 2019. For example: $7.65 is the price for a call with a strike of $95.
Question 1a
Fill in the Blanks
For the call option with a strike of $95: the payoff is $- blank1 -, and the profit is $- blank2 -
Question 1b
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For the put option with a strike of $95: the payoff is $- blank1 -, and the profit is $- blank2 -
Question 1c
Fill in the Blanks
For the call option with a strike of $105: the payoff is $- blank1 -, and the profit is $- blank2 -
Question 1d
Fill in the Blanks
For the put option with a strike of $105: the payoff is $- blank1 -, and the profit is $- blank2 -
Microsoft (MSFT) Underlying stock Price: 101.51 Expiration Strike Call Put January 18, 2019 95 7.65 0.98 January 18, 2019 100 3.81 2.20 January 18, 2019 105 1.45 4.79Step by Step Solution
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