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Problem 15-6 Calculating Option Payoffs (LO2, CFA2) Calls Puts Close Strike Price Expiration Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40
Problem 15-6 Calculating Option Payoffs (LO2, CFA2)
Calls | Puts | ||||||
Close | Strike Price | Expiration | Vol. | Last | Vol. | Last | |
Hendreeks | |||||||
103 | 100 | Feb | 72 | 5.20 | 50 | 2.40 | |
103 | 100 | Mar | 41 | 8.40 | 29 | 4.90 | |
103 | 100 | Apr | 16 | 10.68 | 10 | 6.60 | |
103 | 100 | Jul | 8 | 14.30 | 2 | 10.10 | |
Suppose you buy 40 July 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $86.40 per share. How much is your options investment worth? What is your net gain? (Do not round intermediate calculations.)
Maximum gain-
Terminal value-
Net gain-
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