Question: Refer Table 23.2, which lists prices of various Google options. Use the data in the table to calculate the payoff and the profits for investments

Refer Table 23.2, which lists prices of various Google options. Use the data in the table to calculate the payoff and the profits for investments in each of the following September maturity options, assuming that the stock price on the expiration date is $460.

a. Call option with exercise price of $430.

b. Put option with exercise price of $430.

c. Call option with exercise price of $460.

d. Put option with exercise price of $460.

e. Call option with exercise price of $490

f. Put option with exercise price of $490.

Refer Table 23.2, which lists prices of various Google options.

Stock price on Expiration date..................$460.00
Call option with exercise price (a)...............$430.00
Put option with exercise price (b)...............$430.00
Call option with exercise price (c).............. $460.00
Put option with exercise price (d)............... $460.00
Call option with exercise price (e).............. $490.00
Put option with exercise price (f)............... $490.00

Table 23.2 Expiration Date Exercise Price Call Price Put Price S 430.00 S 41.20S 11.05 22.5022.20 10.1039.36 65.9827.20 42.5041.00 28.8051.60 96.0056.10 80.0069.80 68.0084.20 Sep-10 460.00 490.00 430.00 460.00 490.00 430.00 460.00 490.00 Jan-11 Jan-12

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