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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 July 2017 expiration options on a single share, assuming that the stock price on the expiration date is $64. (Leave no cells blank - be certain to enter "O" 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 = 70 b. Put option, X = 70 C. Call option, X = 72 d. Put option, X = 72 e. Call option, X = 74 f. Put option, X = 74 Microsoft (MSFT) Underlying stock price = $71.75 Expiration Strike Call Put June 16, 2017| 70 2.02 0.24 June 16, 2017 72 0.67 10.90 June 16, 2017 74 0.13 2.37 July 7, 2017 July 7, 2017 July 7, 2017 70 72 74 2.40 1.15 0.42 0.58 1.32 2.59
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