In: Finance
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $34. |
Calls | Puts | |||||||||||||||||
Strike | ||||||||||||||||||
Option | Expiration | Price | Vol. | Last | Vol. | Last | ||||||||||||
Macrosoft | Feb | 36 | 92 | .93 | 47 | 1.93 | ||||||||||||
Mar | 36 | 68 | 1.17 | 29 | 2.34 | |||||||||||||
May | 36 | 29 | 1.45 | 18 | 2.76 | |||||||||||||
Aug | 36 | 10 | 1.66 | 10 | 2.80 | |||||||||||||
a. |
Suppose you buy 17 contracts of the February 36 call option. How much will you pay, ignoring commissions? |
Cost | $ |
Suppose you buy 17 contracts of the February 36 call option. Macrosoft stock is selling for $37 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 $36? |
Payoff | $ |
Suppose you buy 17 contracts of the August 36 put option. |
c-1 | What is your maximum gain? |
Maximum gain | $ |
c-2 |
On the expiration date, Macrosoft is selling for $30 per share. How much is your options investment worth? |
Position value | $ |
c-3 | On the expiration date, Macrosoft is selling for $30 per share. What is your net gain? |
Net gain | $ |
Suppose you sell 17 of the August 36 put contracts. |
d-1 |
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-2 |
What is your net gain or loss if Macrosoft is selling For $38 at expiration? (Enter your answer as a positive value.) |
(Click to select)GainLoss | $ |
d-3 |
What is the break-even stock price? (Round your answer to 2 decimal places, (e.g., 32.16).) |
Break-even |
$ |