Review Figure 20.1, which lists prices of various CAE options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following June expiration options, assuming that the stock price on the expiration date is $24.

Payoff Profit/Loss 

a. Call option, X = $ 22         $         $ 

b. Put option, X = $ 22         $         $ 

c. Call option, X = $ 24         $         $ 

d. Put option, X = $ 24         $         $ 

e. Call option, X = $ 26         $         $ 

f. Put option, X = $ 26          $          $

Transcribed Image Text:

Last update: May 1, 2018 at 4:29 p.m." Last Price: 24.200; Net Change: -0.070; Bid Price: 24.150 Ask price: 24.200; 30-day Historical Volatility: 17.36% Call Strike Put Bid price Ask pice Last price Impl. vol. Open int. Open interest: 1,568 3.15 2.15 1.2 0.4 0.04 0 0 18-May-18 18-May-18 18-May-18 18-May-18 18-May-18 18-May-18 18-May-18 15-Jun-18 15-Jun-18 15-Jun-18 15-Jun-18 15-Jun-18 15-Jun-18 15-Jun-18 15-Jun-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Sep-18 21-Dec-18 21-Dec-18 21-Dec-18 21-Dec-18 21-Dec-18 4.2 3.2 2.25 1.35 0.6 0.2 0.05 – do 0 4.15 3.25 2.35 1.6 1 0.55 0.25 0.09 2.35 1.6 0.95 0.55 0.2 3.3 2.3 1.3 055 (15 009 0.1 4.3 3.3 235 145 0.7 0.3 0.1 009 4.5 3.55 265 185 125 0.75 0.5 025 21-Dec-18 0.15 "Data delayed by at least 15 minutes. 305 2.3 175 1.2 1 055 3.3 37.80% 2.3 27.20% 1.3 19.40% 0.55 17.80% 0.15 17.20% 0.09 23.50% 33.20% 0.1 4.3 34.50% 27.10% 3.3 235 23 20% 1.45 19.30% 0.7 16.30% 0.3 16.40% 0.1 0.09 16.60% 20.00% 4.5 24.40% 3.55 21.90% 2.65 19.10% 1.85 17.70% 1.25 17.30% 0.75 0.5 0.25 3.05 2.3 1.75 1.2 1 0.55 16.50% 16.70% 15.90% 18.60% 17.20% 16.50% 16.00% 16.50% 16.00% Voume: 30 287820OR 10 doo N 50 5 17 31 1,143 37 20 0 1 4 oooooooooo 10 62 15 10 0 0 0 0 20 0 Vol. 0 coooooooooooooooooo 20 0 0 0 10 0 ooooooooo 0 0 0 21 18-May-18 22 18-May-18 23 18-May-18 24 18-May-18 25 18-May-18 26 18-May-18 27 18-May-18 15-Jun-18 21 15-Jun-18 22 15-Jun-18 23 15-Jun-18 20 23 21-Sep-18 21-Sep-18 24 Volume: 10 Bid price Ask price Last price Impl. vol. Open int. Open interest: 290 0 C09 C09 0.1 C25 0 25 21-Dec-18 26 21-Dec-18 27 21-Dec-18 0.02 0.2 0.8 1.75 2.75 0 0.01 0.06 C09 C09 01 0.15 0.2 24 15-Jun-18 0.45 C55 1.05 1.15 25 26 15-Jun-18 15-Jun-18 1.85 2 27 15-Jun-18 2.8 295 20 21-Sep-18 0.01 0.2 21 21-Sep-18 0.07 C25 22 21-Sep-18 0.4 0.2 0.45 C65 U.B 25 21-Sep-18 1.35 26 21-Sep-18 2.05 27 21-Sep-18 22 21-Dec-18 23 21-Dec-18 24 21-Dec-18 1 1.9 285 1 155 2.3 3.15 2.85 0.25 C65 0.4 1.1 0.85 1.5 1.35 2 2.85 205 2.7 3.35 0.09 40.80% 0.09 29.70% 0.1 20.00% 0.25 15.10% 17.30% 22.50% 1 1.9 2.85 0.09 31.90% 0.09 25.60% 01 0.2 21.00% 17.80% 0.55 17.50% 1.15 17.80% 2 18.90% 22.00% 2.95 0.2 21.50% 19.20% 18.20% 17.60% 16.40% 16.10% 16.30% 16.30% 17.00% 16.70% 16.50% 2.05 16.00% 2.7 15.60% 3.35 15.10% 0.25 0.4 0.65 1 1.55 2.3 3.15 0.65 1.1 1.5 on 0 7 22 11 20 11 0 24 30 40 15 41 17 FOO 11 0 8 3 ooooooooocow 0 0 0 0 0 0 Vol. ooooooooocooo 10 0 0 0 0 0 oooooooooooo