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Refer to Figure 15.1, which lists the prices of various Facebook 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 Facebook options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following Oct-14 expiration options on a single share, assuming that the stock price on the expiration date is $84. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)
Payoff | Profit/Loss | ||
a. | Call option, X = 75 | ||
b. | Put option, X = 75 | ||
c. | Call option, X = 80 | ||
d. | Put option, X = 80 | ||
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