The following option prices were observed for calls and puts on a stock on July 6 of a particular year. Use this information for problems 6 through 24. The stock was priced at 165.13. The expirations are July 17, August 21, and October 16. The continuously compounded risk-free rates associated with the three expirations are 0.0503, 0.0535, and 0.0571, respectively. The standard deviation is 0.21.

Determine the profits for the holding period indicated for possible stock prices of 150, 155, 160, 165, 170, 175, and 180 at the end of the holding period. Answer any other questions as indicated.

Calls

Puts

Strike	July	Aug	Oct		July	Aug	Oct
160	6.00	8.10	11.10		.75	2.75	4.50
165	8.10	5.25	8.10		2.40	4.75	6.75
170	3.25	3.25	6.00		5.75	7.50	9.00

ST	Oct 160 PUT	Oct 174.83 call
150	9.9702	.0109
155	6.1092	.0637
160	3.2545	.2686

How are they getting the number 9.9702 and .0109 for Oct 150 and the rest? How do you calculate it by hand and not excel.

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