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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $33. a. Suppose you buy 16
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $33. a. Suppose you buy 16 contracts of the February 35 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Suppose you buy 16 contracts of the February 35 call option and Macrosoft stock is selling for $36 per share on the expiration date. b-1. How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-2. What if the terminal stock price is $35 ? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Suppose you buy 16 contracts of the August 35 put option. c-1. What is your maximum gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. On the expiration date, Macrosoft is selling for $29 per share. How much is your options investment worth? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-3. On the expiration date, Macrosoft is selling for $29 per share. What is your net gain? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Suppose you sell 16 of the August 35 put contracts. d-1. What is your net gain or loss if Macrosoft is selling for $31 at expiration? (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d2. What is your net gain or loss if Macrosoft is selling for $37 at expiration? (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-3. What is the break-even price that is, the terminal stock price that results in a zero profit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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