Question: Consider the following positions on the Intel stock. For each of the positions choose the strike X = $45. Choose January option. a. Long 1

Consider the following positions on the Intel stock. For each of the positions choose the strike X = $45. Choose January option.
a. Long 1 call contract.
b. Short 1 put.
c. Long 1 call + short 1 put.
d. Long 1 call + long 1 put.
e. Long 1 call with strike $45 and short 1 call with strike $46.
Assume that you enter and close the positions at the midpoint of bid-ask spread.
Assume that you trade each contract on Nov 1 (i.e. enter the positions).
1. Close out your positions on Nov 8. Calculate your net dollar gain or loss.
2. Now assume that you exercise options on Nov 8. For each position compute your net gain or loss.
3. For each position draw the payoff diagram, marking the strikes and the stock price on Nov 8 clearly, as well as your gain or loss.

November 8 INTC (INTEL CORP) 46.48 -0.30 Last Maturity |Strike Last Open Calls Net Bid Ask Vol Open Int Puts Net Bid Ask

November 1 INTC (INTEL CORP) 45.785 +0.295 Last Maturity |Strike Last Open Bid Ask Vol Int Calls Net Bid Ask Vol Open Int Puts Net Sale Sale 3497 INTC1715L43-E 2.97 +0.13 2.95 3.00 2 17 Dec 43.00 INTC1715X43-E 0.39 -0.05 0.38 0.73 20 2137 12061 INTC1715L44-E 1.98 0.0 2.19 2.23 0 17 Dec 44.00 INTC1715X44-E 0.60 -0.14 0.53 0.62 20 2740 -0.14 0.97 1.00 1 INTC1715L45-E 1.57 +0.19 1.54 1.58 223 15703 17 Dec 45.00 INTC1715X45-E 1.02 2086 6939 INTC1715L46-E 1.07 +0.10 1.03 1.07 32 17 Dec 46.00 INTC1715X46-E 1.41 -0.29 1.45 1.49 21 819 1277 INTC1819A43-E 3.43 +0.20 3.35 3.50 3 3388 18 Jan 43.00 INTC1819M43-E 0.78 0.0 0.68 0.72 0 5860 INTC1819A44-E 2.44 0.0 2.62 2.68 0 18 Jan 44.00 INTC1819M44-E 0.94 -0.17 0.96 1.00 10 2365 INTC1819A45-E 2.07 +0.19 2.00 2.05 3 32063 18 Jan 45.00 INTC1819M45-E 1.47 0.0 1.36 1.40 0 4589 INTC1819A46-E 1.43 0.0 1.48 1.58 0 1753 18 Jan 46.00 INTC1819M46-E 1.92 -0.11 1.84 1.89 5 860 November 8 INTC (INTEL CORP) 46.48 -0.30 Last Maturity |Strike Last Open Calls Net Bid Ask Vol Open Int Puts Net Bid Ask Vol Sale Sale Int INTC1715L43-E 3.99 0.0 3.60 4.10 0 3309 17 Dec 43.00 INTC1715X43-E 0.21 0.0 0.20 0.30 0 4273 INTC1715L44-E 2.88 0.0 2.83 3.15 0 7237 17 Dec 44.00 INTC1715X44-E 0.32 0.0 0.31 0.39 0 4214 INTC1715L45-E 2.30 0.0 2.08 2.34 0 5851 17 Dec 45.00 INTC1715X45-E 0.52 0.0 0.58 0.64 0 4397 INTC1715L46-E 1.61 0.0 1.41 1.58 0 16133 17 Dec 46.00 INTC1715X46-E 0.86 0.0 0.93 0.98 0 10322 INTC1819A43-E 4.35 0.0 3.95 4.45 0 3262 18 Jan 43.00 INTC1819M43-E 0.56 0.0 0.47 0.57 0 1616 INTC1819A44-E 3.48 0.0 3.25 3.45 0 5774 18 Jan 44.00 INTC1819M44-E 0.69 0.0 0.61 0.78 0 3125 INTC1819A45-E 2.63 0.0 2.59 2.75 0 32895 18 Jan 45.00 INTC1819M45-E 1.02 0.0 1.00 1.05 0 23364 INTC1819A46-E 2.00 -0.14 1.97 2.12 3 2438 18 Jan 46.00 INTC1819M46-E 1.41 0.0 1.38 1.48 0 2232

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First Strategy Long 1 Call Option Part1 Premium paid for January 45 Call on 1st Nov 2 2052 2025 Premium value for January 45 call on 8th Nov 259 2752 267 Net Dollar Gain in closing out the position on ... View full answer

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