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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 | |
Use the data in the table to 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 $420. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round "Profit" answers to 2 decimal places.) |
Payoff | Profit | ||
a. | Call option with exercise price of $390 | $ | $ |
b. | Put option with exercise price of $390 | ||
c. | Call option with exercise price of $420 | ||
d. | Put option with exercise price of $420 | ||
e. | Call option with exercise price of $450 | ||
f. | Put option with exercise price of $450 |
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