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Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $28. Calls Puts Strike Option Expiration

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $28.

Calls Puts
Strike
Option Expiration Price Vol. Last Vol. Last
Macrosoft Feb 30 86 .33 41 1.33
Mar 30 62 .57 23 1.74
May 30 23 .85 12 2.16
Aug 30 4 1.06 4 2.20

a.

Suppose you buy 11 contracts of the February 30 call option. How much will you pay, ignoring commissions?

Cost $

Suppose you buy 11 contracts of the February 30 call option. Macrosoft stock is selling for $31 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 $30?

Payoff $

Suppose you buy 11 contracts of the August 30 put option.

c-1 What is your maximum gain?

Maximum gain $

c-2

On the expiration date, Macrosoft is selling for $24 per share. How much is your options investment worth?

Position value $

c-3 On the expiration date, Macrosoft is selling for $24 per share. What is your net gain?

Net gain $

Suppose you sell 11 of the August 30 put contracts.

d-1

What is your net gain or loss if Macrosoft is selling for $26 at expiration? (Enter your answer as a positive value.)

(Click to select)GainLoss $

d-2

What is your net gain or loss if Macrosoft is selling For $32 at expiration? (Enter your answer as a positive value.)

(Click to select)LossGain $

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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