Use the option quote information shown below to answer the questions that follow. The stock is currently selling for $42.

CALLS PUTS

Options & NY close	Expiration	Strike Price	Vol.	Last	Vol.	Last
Macrosoft
	February	44	100	1.73	55	2.73
	March	44	76	1.97	37	3.14
	May	44	37	2.25	26	3.56
	August	44	18	2.46	18	3.60

A. Suppose you buy 25 contracts of February 44 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations.)

Cost $

Suppose you buy 25 contracts of the February 44 call option and Macrosoft stock is selling for $45 per share on the expiration date.

b-1. How much is your options worth? (DO not round intermediate calculations.)

Payoff $

b-2. What if the terminal stop price is $44? (Do not round intermediate calculations.) Payoff $ Suppose you buy 25 contracts of the August 44 put option. c-1. What is your maximum potential gain? (Do not round intermediate calculations.)

Maximum gain $

c-2. On the expiration date, Macrosoft is selling for $38 per share. How much is your options investment worth? (Do not round intermediate calculations.)

Position Value $

c-3. On the expiration date, Macrosoft is selling for $38 per share. What is your net gain? (Do not round intermediate calculations.)

Net gain $

Suppose you sell 25 of the August 44 put contracts.

d-1. What is your net gain or loss if Macrosoft is selling for $39 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.)

d-2. What is your net gain or loss if Macrosoft is selling for $46 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.)

d-3. What is the break-even price, that is, the terminal stock price that results in zero profit? (DO not round intermediate calculations and round your answer to the 2 decimal places.)