Question
The following table lists prices of Apple options in April 2013 when Apple stock was selling for $490. Expiration Date Exercise Price Call Price Put
The following table lists prices of Apple options in April 2013 when Apple stock was selling for $490. |
Expiration Date | Exercise Price | Call Price | Put Price |
July 2013 | $460 | $44.56 | $14.67 |
490 | 26.45 | 28.55 | |
520 | 14.90 | 46.60 | |
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 $510. (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 $460 | $ | $ |
ii. | Put option with exercise price of $460 | ||
iii. | Call option with exercise price of $490 | ||
iv. | Put option with exercise price of $490 | ||
v. | Call option with exercise price of $520 | ||
vi. | Put option with exercise price of $520 | ||
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 $470. (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 $460 | $ | $ |
ii. | Put option with exercise price of $460 | ||
iii. | Call option with exercise price of $490 | ||
iv. | Put option with exercise price of $490 | ||
v. | Call option with exercise price of $520 | ||
vi. | Put option with exercise price of $520 | ||
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