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Use the option quote information shown below to answer the questions that follow. The stock is currently selling for $37. Option and NY Close Macrosoft
Use the option quote information shown below to answer the questions that follow. The stock is currently selling for $37. Option and NY Close Macrosoft Calls Puts Expiration Strike Price Vol Last Vol Last 2.23 2.64 3.06 3.10 39 39 39 39 95 71 32 13 1.23 50 1.47 1.7521 1.9613 February March May August 32 a. Suppose you buy 20 contracts of the February 39 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations.) Cost Suppose you buy 20 contracts of the February 39 call option and Macrosoft stock is selling for $40 per share on the expiration date. b-1. How much is your options investment worth? (Do not round intermediate calculations.) Payoff b-2. What if the terminal stock price is $39? (Do not round intermediate calculations.) Payoff Suppose you buy 20 contracts of the August 39 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 $33 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 $33 per share. What is your net gain? (Do not round intermediate calculations.) Net gain Suppose you sell 20 of the August 39 put contracts. d-1. What is your net gain or loss if Macrosoft is selling for $34 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.) Click to select? ST ] (Click to select) * d-2. What is your net gain or loss if Macrosoft is selling for $41 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.) Click to select) 0 $ 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 2 decimal places, e.g., 32.16.) Break-even
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