a) Payoff and profit for a call position - where the Exercise price is $30, the premium to purchase a call is $1.30, there are 2 contracts purchased, each contract is 100 shares, and the current stock price is $40.

 

b) Payoff and profit for a put position - where the Exercise price is $30, the premium to

purchase a put is $5.80, there are 3 contracts purchased, each contract is 100 shares,

and the current stock price is $40.

c) Profit for a stock position - where the original price per share of stock was $25, there

are 5 lots purchased, each lot represents 100 shares, and the current stock price is $40

 To calculate Payoff you will need the MAX function in Excel. Specifically =MAX(0,

 differences between prices) * total number of shares. To calculate Profit you will need the

 formula Payoff minus (total number of shares times Premium).

Calculate the payoffs and profits at expiration for the following stock and option positions:

 

 

Answer rating: 100% (QA)

Id be glad to calculate the payoffs and profits for the call put and stock positions at expiration i... View the full answer