Use the information in the following table to answer questions A and B. (Assume options can be exercised prior to expiry date).

December 2019, Sydney Ltd

Last share (sale) price = $16.00

Strike Price Jun July August_

Call Options _

$17.00 $0.80 $1.45 $1.60

Put Options _

$17.00 $1.30 $2.00 $1.80

Required:

A. Suppose you buy 300 Jun $17.00 call contracts. How much will you pay, ignoring commissions? Assume Sydney share price is $21 any day prior to expiry date, then what is your net gain. (5 marks)

2. Suppose you buy 30 August $17 put contracts. What is your maximum net gain? On the expiration date, Sydney Share is selling for $13.00 per share. What is your options worth?

(5 marks)

Answer 8: [Answer here]

1. (Calculate and type your answer)

Share Price	Exercise Price	Option price	Net payoff per contract	Total payoff

[Show workings here]

2. (Calculate and type your answer)

Share Price	Exercise Price	Option price	Net payoff per contract	Total payoff

[Show workings here]