1. Starcraft Systems, Incorporated (STAR) has sunk billions into a first of its kind interstellar spacecraft and is planning its first critical test flight for June 3^rd. Today is May 10^th and STAR sells for 179 per share. You currently do not own STAR. Option Chain for STAR is presented below.

1. At expiration STAR is at 50.

1. What Happens with the option?
2. What would the payoff to your option strategy be?
3. What would the profit or loss from your option strategy be?

STAR Option Chain Calls Bid Ask Puts Ask Strike Bid 7.75 5.5 4.4 3.05 1.92 1.23 29-May 29-May 29-May 29-May 29-May 29-May 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 8.05 6.25 4.6 3.2 2.16 1.41 10.1 8.55 7.15 5.6 4.45 3.6 172.5 175 177.5 180 182.5 185 172.5 175 177.5 180 182.5 185 1.82 2.49 3.35 4.5 5.95 7.55 2.56 3.2 4.4 4.85 6.75 8.15 1.91 2.62 3.75 4.7 6.25 7.95 3.95 8.3 6.6 6 4.65 3.45 1.99 6.1 6.95 8.3 11.95