Question
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $41. Calls Puts Strike Option Expiration
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $41. Calls Puts Strike Option Expiration Price Vol. Last Vol. Last Macrosoft Feb 43 99 1.63 54 2.63 Mar 43 75 1.87 36 3.04 May 43 36 2.15 25 3.46 Aug 43 17 2.36 17 3.50 a. Suppose you buy 24 contracts of the February 43 call option. How much will you pay, ignoring commissions? Cost $ 39.12 Suppose you buy 24 contracts of the February 43 call option. Macrosoft stock is selling for $44 per share on the expiration date. b-1 How much is your options investment worth? Payoff $ b-2 What if the terminal stock price is $43? Payoff $ Suppose you buy 24 contracts of the August 43 put option. c-1 What is your maximum gain? Maximum gain $ c-2 On the expiration date, Macrosoft is selling for $37 per share. How much is your options investment worth? Position value $ c-3 On the expiration date, Macrosoft is selling for $37 per share. What is your net gain? Net gain $ Suppose you sell 24 of the August 43 put contracts. d-1 What is your net gain or loss if Macrosoft is selling for $38 at expiration? (Enter your answer as a positive value.) $ d-2 What is your net gain or loss if Macrosoft is selling For $45 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).) Break-even $
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