Refer to Table 23.2

1. Payoff and profit if stock price on expiration date = $780:

2.Payoff and profit if stock price on expiration date = $690:

:

c. Explain why the price is different.

Expiration Date Call Price Put Price March 2016 June 2016 Exercise Price $700 750 800 700 750 800 700 750 800 $ 64.73 42.00 21.50 86.00 58.00 35.60 105.11 81.80 61.10 $ 25.00 47.67 84.00 41.60 60.30 90.90 63.54 76.50 106.00 January 2017 Exercise Payoff Profit Cost 105.11 700.00 700.00 63.54 750.00 81.80 January 2017 Call January 2017 Put January 2017 Call January 2017 Put January 2017 Call January 2017 Put 750.00 76.50 800.00 61.10 800.00 106.00 Exercise Payoff Profit Cost 105.11 700.00 700.00 63.54 750.00 81.80 January 2017 Call January 2017 Put January 2017 Call January 2017 Put January 2017 Call January 2017 Put 750.00 76.50 800.00 61.10 800.00 106.00 Expiration Date Call Price Put Price March 2016 June 2016 Exercise Price $700 750 800 700 750 800 700 750 800 $ 64.73 42.00 21.50 86.00 58.00 35.60 105.11 81.80 61.10 $ 25.00 47.67 84.00 41.60 60.30 90.90 63.54 76.50 106.00 January 2017 Exercise Payoff Profit Cost 105.11 700.00 700.00 63.54 750.00 81.80 January 2017 Call January 2017 Put January 2017 Call January 2017 Put January 2017 Call January 2017 Put 750.00 76.50 800.00 61.10 800.00 106.00 Exercise Payoff Profit Cost 105.11 700.00 700.00 63.54 750.00 81.80 January 2017 Call January 2017 Put January 2017 Call January 2017 Put January 2017 Call January 2017 Put 750.00 76.50 800.00 61.10 800.00 106.00