Question
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $36. Option Expiration Strike Price Calls
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $36. |
Option | Expiration | Strike Price | Calls | Puts | ||
---|---|---|---|---|---|---|
Volume | Last | Volume | Last | |||
Macrosoft | February | 37 | 94 | 1.13 | 49 | 2.13 |
March | 37 | 70 | 1.37 | 31 | 2.54 | |
May | 37 | 31 | 1.65 | 20 | 2.96 | |
August | 37 | 12 | 1.86 | 12 | 3.00 |
a. | Suppose you buy 19 contracts of the February 37 call option. How much will you pay, ignoring commissions? |
Suppose you buy 19 contracts of the February 37 call option. Macrosoft stock is selling for $39 per share on the expiration date. |
b-1. | How much is your options investment worth? |
b-2. | What if the terminal stock price is $38? |
Suppose you buy 19 contracts of the August 37 put option. |
c-1. | What is your maximum gain? |
c-2. | On the expiration date, Macrosoft is selling for $32 per share. How much is your options investment worth? |
c-3. | On the expiration date, Macrosoft is selling for $32 per share. What is your net gain?
|
Suppose you sell 19 of the August 37 put contracts. |
d-1. | What is your net gain or loss if Macrosoft is selling for $33 at expiration? (Enter your answer as a positive value.) |
d-2. | What is your net gain or loss if Macrosoft is selling For $40 at expiration? (Enter your answer as a positive value.) |
d-3. | What is the break-even stock price? (Round your answer to 2 decimal places, e.g., 32.16.) |
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