2 Problem 15-4 (Algo) 9.09 points eBook Required: Refer to Figure 15.1, which lists the prices...

Transcribed Image Text:

2 Problem 15-4 (Algo) 9.09 points eBook Required: Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following November 2019 expiration options on a single share, assuming that the stock price on the expiration date is $143. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.) Payoff Profit/Loss a. Call option, X=140 Print b. Put option, X 140 o References c. Call option, X=145 d. Put option, X=145 1 Problem 15-3 (Algo) 9.09 points The following price quotations are for exchange-listed options on Primo Corporation common stock. Skipped Company Primo 61.12 Strike 56 Expiration February Call 7.26 Put 0.49 Required: With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100 shares. eBook Amount for one call option contract Print References Microsoft (MSFT) Underlying stock price = |$139.69 Expiration Strike Call Put November 15, 2019 135 6.78 1.89 November 15, 140 3.60 3.70 2019 November 15, 145 1.50 6.65 2019 December 20, 135 7.93 3.28 2019 December 20, 140 4.88 5.30 2019 December 20, 145 2.71 8.10 2019 9.09 3 points Problem 15-5 (Algo) Required: You purchase one Microsoft December $145 put contract for a premium of $8.10. What is your maximum possible profit? Assume each contract is for 100 shares. Maximum possible profit eBook Print References 2 Problem 15-4 (Algo) 9.09 points eBook Required: Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following November 2019 expiration options on a single share, assuming that the stock price on the expiration date is $143. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.) Payoff Profit/Loss a. Call option, X=140 Print b. Put option, X 140 o References c. Call option, X=145 d. Put option, X=145 1 Problem 15-3 (Algo) 9.09 points The following price quotations are for exchange-listed options on Primo Corporation common stock. Skipped Company Primo 61.12 Strike 56 Expiration February Call 7.26 Put 0.49 Required: With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100 shares. eBook Amount for one call option contract Print References Microsoft (MSFT) Underlying stock price = |$139.69 Expiration Strike Call Put November 15, 2019 135 6.78 1.89 November 15, 140 3.60 3.70 2019 November 15, 145 1.50 6.65 2019 December 20, 135 7.93 3.28 2019 December 20, 140 4.88 5.30 2019 December 20, 145 2.71 8.10 2019 9.09 3 points Problem 15-5 (Algo) Required: You purchase one Microsoft December $145 put contract for a premium of $8.10. What is your maximum possible profit? Assume each contract is for 100 shares. Maximum possible profit eBook Print References