The following table lists prices of Apple options in April 2013 when Apple stock was selling for $420. Expiration Date Exercise Price Call Price Put
The following table lists prices of Apple options in April 2013 when Apple stock was selling for $420. |
Expiration Date | Exercise Price | Call Price | Put Price |
July 2013 | $390 | $43.16 | $14.60 |
420 | 25.75 | 27.85 | |
450 | 14.20 | 45.90 | |
a. | Calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $440. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round "Profit" to 2 decimal places.) |
Payoff | Profit | ||
i. | Call option with exercise price of $390 | $ | $ |
ii. | Put option with exercise price of $390 | ||
iii. | Call option with exercise price of $420 | ||
iv. | Put option with exercise price of $420 | ||
v. | Call option with exercise price of $450 | ||
vi. | Put option with exercise price of $450 | ||
b. | Calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $400. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round "Profit" to 2 decimal places.) |
Payoff | Profit | ||
i. | Call option with exercise price of $390 | $ | $ |
ii. | Put option with exercise price of $390 | ||
iii. | Call option with exercise price of $420 | ||
iv. | Put option with exercise price of $420 | ||
v. | Call option with exercise price of $450 | ||
vi. | Put option with exercise price of $450 | ||
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