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Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss
Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following December 2019 expiration options on a single share, assuming that the stock price on the expiration date is $141. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)
\begin{tabular}{|l|ll|ll|} \hline & \multicolumn{2}{|l|}{ Payoff } & \multicolumn{2}{|c|}{ Profit/Loss } \\ \hline a. Call option, X=135 & $ & 5.00 & $ & (1.78) \\ \hline b. Put option, X=135 & $ & 0.00 & $ & (1.89) \\ \hline c. Call option, X=145 & $ & 0.00 & $ & (1.50)X \\ \hline d. Put option, X=145 & $ & 5.00 & $ & (1.65) \\ \hline \end{tabular}Step by Step Solution
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