Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure...

   

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Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following January 18 expiration options, assuming that the stock price on the expiration date is $100. (D not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign.) a. Call option, X = $95.00 b. Put option, X = $95.00 c. Call option, X = $100.00 d. Put option, X = $100.00 e. Call option, X = $105.00 f. Put option, X = $105.00 Payoff Profit/Loss Microsoft (MSFT) Underlying stock Price: 101.51 Expiration Strike Call Put January 18, 2019 95 7.65 0.98 January 18, 2019 100 3.81 2.20 January 18, 2019 105 1.45 4.79 February 8, 2019 95 9.50 2.86 February 8, 2019 100 5.60 3.92 February 8, 2019 105 3.08 6.35 Figure 20.1 Prices of stock options on Microsoft on January 2, 2019 Source: Google Finance, www.google.com/finance. Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following January 18 expiration options, assuming that the stock price on the expiration date is $100. (D not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign.) a. Call option, X = $95.00 b. Put option, X = $95.00 c. Call option, X = $100.00 d. Put option, X = $100.00 e. Call option, X = $105.00 f. Put option, X = $105.00 Payoff Profit/Loss Microsoft (MSFT) Underlying stock Price: 101.51 Expiration Strike Call Put January 18, 2019 95 7.65 0.98 January 18, 2019 100 3.81 2.20 January 18, 2019 105 1.45 4.79 February 8, 2019 95 9.50 2.86 February 8, 2019 100 5.60 3.92 February 8, 2019 105 3.08 6.35 Figure 20.1 Prices of stock options on Microsoft on January 2, 2019 Source: Google Finance, www.google.com/finance.

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To calculate the payoff and profits for each of the given options we need to consider the strike pri... View the full answer