Question
The following table contains relevant option data. Option Quote Call Put Expiration Strike Last Volume Open Interest Last Volume Open Interest Jan 190 4.40 815
The following table contains relevant option data.
Option Quote | |||||||
| Call | Put | |||||
Expiration | Strike | Last | Volume | Open Interest | Last | Volume | Open Interest |
Jan | 190 | 4.40 | 815 | 5697 | 1.75 | 507 | 2496 |
Feb | 190 | 6.75 | 402 | 2808 | 3.00 | 3553 | 10377 |
Apr | 190 | 8.85 | 107 | 1866 | 5.20 | 527 | 2177 |
Jul | 190 | 10.95 | 15 | 645 | 8.54 | 6 | 1142 |
Jan | 195 | 0.01 | 2451 | 11718 | 0.70 | 4090 | 8862 |
Feb | 195 | 3.65 | 1337 | 11902 | 5.00 | 860 | 3156 |
Apr | 195 | 5.90 | 1785 | 2928 | 7.30 | 934 | 1141 |
Jul | 195 | 8.45 | 13 | 5773 | 10.85 | 22 | 3419 |
a. Calculate the payoff and profit at expiration for the February 190 calls, if you purchase the option at the stated price and at expiration the stock price is $195.
b. Calculate the payoff and profit at expiration for the February 195 puts, if you purchase the option at the stated price and at expiration the stock price is $195.
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