References ACROBAT Mailings Review View Layout Desian File Home Insert C Acct 4780 Quiz 5 (1) - Word Review Tell me what you want to do. ACROBAT Sign in View ert References Layout Design Mailings - 11 21 Aa. AaBbccc AabbCcDc AaBb C AaBbcc 11 Normal 11 No Spac. Heading 1 Heading 2 Find ab Replace Select - A aya E DE -- Font Paragraph Styles Editing 3. Use the option quote information shown in the table to answer the questions that follow. The stock is currently trading at $40. Note: One contract has options to purchase 100 shares. Calls Puts Strike Price 38 Vol. Expiration Feb Mar May Aug 85 61 Last 2.35 3.15 4.87 6.16 38 Vol. 37 22 11 3 Last 0.24 0.93 38 22 3 2.44 3.56 38 a. Suppose you buy 10 contracts of the February 38 call option. How much will you pay? b. In part (a), suppose that the stock is selling for $44 per share on expiration date. How much is your investment in options worth? What if the final stock price at expiration is $39? Explain Suppose you purchase ten contracts of the August 38 put option. What is your maximum gain? On the expiration date the stock is selling for $33 per share. How much is your options investment worth? 1 Esc F1 F2 F3 F4 F5 F6 F7 F8 F9 a # $ % A 2 & * 3 4 5 7 8 Tab E R Y