Problem $2$: Following are the option prices for calls and puts for Amazon $($AMZN$)$ with June $16,2017$ expiration date. Suppose that you are bullish on Amazon and would like to own more of the stocks. However, you do not want to buy AMZN at its current price and instead, you would be happy to own AMZN at $$972\mathrm{.}50$ per share. However, if AMZN costs more than $$972\mathrm{.}50,$ you do not wish you own the stock. You currently have $150$ shares and you have $$97,000$ in cash. What type of options would you trade and why? How many contracts would you be able to trade? What is the total premium paid and$/$or received?

Calls & Puts

Calls

Puts

Expand All Collapse All In the Money Near the Money Out of the Money

$\backslash$table$[[$Bid $/,$Ask $/],[$Bid Size,Ask Size$],[19\mathrm{.}80,20\mathrm{.}00],[4,9],[18\mathrm{.}20,18\mathrm{.}75],[71,59],[16\mathrm{.}80,17\mathrm{.}25],[35,8]]$

$\backslash$table$[[\backslash$table$[[$Volume I$],[$Open Int$]],\backslash$table$[[$Changel$],[\%$ Change$]],$Pos.,$\backslash$table$[[$Strike Price$],[$Expiration$]],$Pos.$],[\backslash$table$[[395],[1\mathrm{.}462]],\backslash$table$[[2\mathrm{.}86],[16\mathrm{.}82\%$