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Use the following table that lists the prices of various IBM options to calculate the payoff and the profits for investments in each of the
Use the following table that lists the prices of various IBM options to calculate the payoff and the profits for investments in each of the following January 2012 expiration options, assuming that IBM stock price on the expiration date(ST)is
$165.
| ST=$165 |
| Strike | Cost | Payoff | Profit |
| (A) | Call X = | $160.00 |
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| (B) | Put X = | $160.00 |
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| (C) | Call X = | $165.00 |
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| (D) | Put X = | $165.00 |
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| (E) | Call X = | $170.00 |
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| (F) | Put X = | $170.00 |
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