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Required: Refer to Figure 15.1 , which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and
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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 for investments in each of the following November 2019 expiration options on a single share, assuming that the stock price on the expiration date is $141. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss"to 2 decimal places.)
Microsoft (MSFT) | Underlying stock price = $139.69 | ||
---|---|---|---|
Expiration | Strike | Call | Put |
November 15, 2019 | 135 | 6.78 | 1.89 |
November 15, 2019 | 140 | 3.60 | 3.70 |
November 15, 2019 | 145 | 1.50 | 6.65 |
December 20, 2019 | 135 | 7.93 | 3.28 |
December 20, 2019 | 140 | 4.88 | 5.30 |
December 20, 2019 | 145 | 2.71 | 8.10 |
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