The current price of Apple stock is $116. The couple expect Apple stock price will rise to $135 in June 2021. Below are the 3 options of Apple stock.

Questions:

Help them analyze the option values, break-even price and gain/loss on per share basis if stock price does increase to $135. Fill in the table below. (10 marks)

Which option the couple should choose if the stock price estimate on June 2021 is right? (2 marks)

The current price of Apple stock is $116. The couple expect Apple stock price will rise to $135 in June 2021. Below are the 3 options of Apple stock. Option Type Call Expiry Dates June-2021 Strike Price $130 Call June-2021 Option Price $8.1 $20.75 $4.75 $20.55 Put $100 $130 $100 June-2021 Put June-2021 Moneyness Option Type Expiry Dates Strike Price Option Price Intrinsic Value Time Value Breakeve n Price Gain/Loss on June 2021 when Price @ $135 Call $130 $8.1 June- 2021 Call $100 $20.75 Put $130 $21.55 June- 2021 June- 2021 June- 2021 Put $100 $6.4