Question
Use data from the following table to answer questions 1, 2, and 3. Option Quote Call Put Expiration Strike Last Volume Open Interest Last Volume
Use data from the following table to answer questions 1, 2, and 3.
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 |
Jan | 200 | 1.10 | 1248 | 2966 | 5.55 | 637 | 6199 |
Feb | 200 | 1.61 | 1053 | 5530 | 8.09 | 546 | 967 |
Apr | 200 | 3.70 | 629 | 3236 | 10.05 | 375 | 1903 |
Jul | 200 | 6.10 | 80 | 1257 | -- | -- | 1105 |
1. 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.
2. 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.
3. Calculate the payoff and profit at expiration for the February 200 calls, if you purchase the option at the stated price and at expiration the stock price is $203.
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