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Firstly, how would you interpret this table, what are the key parts that need to be look at, and then answer question explaining clearly and

image text in transcribedimage text in transcribedFirstly, how would you interpret this table, what are the key parts that need to be look at, and then answer question explaining clearly and working out clearly.

a) Suppose you buy 10 contracts of the June 1.50 call option. How much will you pay, ignoring commissions?

b) In part a), suppose that Ageas equity is selling for 1.70 per share on the expiration data. How much is your options investment worth? What if the terminal share price is 1.35? Explain.

c) Suppose you buy 10 contracts of the June 1.20 put option. What is your maximum gain? On the expiration date, Ageas is selling for 1.14 per share. How much is your options investment worth? What is your net gain?

d) In part c), suppose you sell 10 of the June 1.20 put contracts. What is your net gain or loss if Ageas is selling for 1.14 at expiration? For 1.32? What is the breakeven pricethat is, the terminal share price that results in a zero profit?

\begin{tabular}{|l|l|l|l|l|l|l|} \hline \multicolumn{9}{|l|}{ Information about the options of Ageas from Euronext Liffe } \\ \hline Codes and classifications \\ \hline Code & FOR & Market & EuronextLiffeAmsterdam & Vol. & 125 & 13 Apr 2012 \\ \hline Exercise type & American & Currency & & 0.I. & 507,670 & 12 Apr 2012 \\ \hline \end{tabular}

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