Question: a. Turn back again to Table 23.2, which lists prices of various Alphabet options. Use the data in the table to calculate the payoff and

a. Turn back again to Table 23.2, which lists prices of various Alphabet options. Use the data in the table to calculate the payoff and the profits for investments in each of the following January 2017 maturity options, assuming that the stock price on the expiration date is $780.

i. Call option with exercise price of $700

ii. Put option with exercise price of $700

iii. Call option with exercise price of $750

iv. Put option with exercise price of $750

v. Call option with exercise price of $800

vi. Put option with exercise price of $800

b. Now repeat part (a), assuming that the stock price on the expiration date is $690.

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