Question
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 | |
Call option, X =190 | ||
Put Option, X = 190 | ||
Call Option, X = 195 | ||
Put Option, X = 195 | ||
Call Option, X = 200 | ||
Put Option, X = 200 |
PRICES AT CLOSE JANUARY 18, 2013 IBM (IBM) 134 Expiration Strike lan 185 Feb 185 Apr 185 Jul 185 Jan 190 Feb 190 Apr 190 190 195 Feb 195 Apr 195 195 lan 200 Feb 200 Apr 200 200 Underlying Stock Price: 194.47 Call Put Open Open Volume Interest Last Volume Interest 307 2431 0.76 302 2488 299 2 1.82 710 3645 41 706 3.60 104 2047 37 6.55 37 1354 815 5697 1.75 507 2496 402 2808 3.00 3553 10377 107 1866 5.20 527 2177 15 645 8.54 6 1142 2451 11718 0.70 4090 8862 1337 11902 5.00 860 3156 1785 2928 7.30 934 1141 13 5773 10.85 22 3419 1248 2966 5.55 637 6199 1053 5530 8.09 546 967 629 3236 10.05 1903 80 1257 1105 Last 9.15 10.60 12.00 14.35 4.40 6.75 8.85 10.95 0.01 3.65 5.90 8.45 1.10 1.61 3.70 6.10 B Ion 375 ... : Figure 20.1 Stock options on IBM closing prices as of January 18, 2013 Source: The Wall Street Journal Online, January 18, 2013
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