Maturity Price 11/16/2018 Maturity Price 1/17/2020 XYZ price

4/11/2018 12.50 20.10 178.10

4/12/2018 9.75 17.50 172.55

Using the above information:

a)Make a P&L explanation for these two options.A P&L explanation is an explanation of the change in the option value between the two days.The change in value should be expressed as a function of delta, gamma, vega and time decay.

b)Discuss the main differences between the P&L explanations of the two options.