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Use Figure 20.1, which lists prices of various IBM options. Use the data in the figure to calculate the payoff and the profits for investments
Use Figure 20.1, which lists prices of various IBM options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following Jan expiration options, assuming that the stock price on the expiration date is $196. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Negative amount should be indicated by a minus sign. Omit the "$"sign in your response.)
Payoff | Profit/Loss | ||||
a. | Call option, X = | $ | 190.00 | $ | $ |
b. | Put option, X = | $ | 190.00 | $ | $ |
c. | Call option, X = | $ | 195.00 | $ | $ |
d. | Put option, X = | $ | 195.00 | $ | $ |
e. | Call option, X = | $ | 200.00 | $ | $ |
f. | Put option, X = | $ | 200.00 | $ | $ |
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