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Refer to Figure 15.3, 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 15.3, 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 November 2014 expiration options on a single share, assuming that the stock price on the expiration date is $78. (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.) Profit/Loss Payoff 3 0 0 a.Call option, X = 75 b.Put option, X = 75 c.Call option, X = 80 d.Put option, X = 80 Facebook (FB) Expiration Strike Oct-14 / 75 Oct-14 80 Underlying stock price = $75.95 Call Put 3.95 3.01 1.65 5.72 75 Nov-14 Nov-14 4.85 2.64 3.97 6.74 80
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