The following option prices were observed for a stock (non-dividend) for July 6 of a particular year. The stock is priced today at $165.13/ share. Assume interest rate=0% The options are European. In the following problems, determine the profits for possible stock prices of $150, 155, 160, 165, 170, 175, and 180. Answer any other questions as requested. Call Premium Put Premium Strike Aug Oct Aug Oct $165 $5.25 $8.1 $4.75 $6.75

Short one October 165 call contract. Hold it until the option expires. Determine the

profits and graph the results. Then identify the break-even stock price at expiration. What

is the maximum possible loss on this transaction?