1.You own a 5 call options with a strike price of $31.50. What is your payoff on this option contract if the underlying stock is selling for $35.00 on the option expiration date?

The payoff amount is the amount that they are receiving for their option not their gain or loss. Several questions ask for the payoff amount.

The payoff is the total dollar amount you will receive so you have to factor in how many contracts you have.

2.You purchased 5 call options with a $37.50 strike price and a call premium of $1.50. On the expiration date, the underlying stock was priced at $42.25. What is the percentage return on your investment?

3.You buy a put with a strike price of $50 and an option premium of $2.40. You simultaneously buy the stock at a price of $50 a share. What is your profit or loss per share on these transactions if the stock price at expiration is $46.00?

4.Sun Lee purchased 4 put option contracts on Jefferson Centres Stores. The option premium was $.80 and the strike price was $27.50. On the expiration date, Jefferson stock was selling for $27.00 a share. What is the payoff on the option contracts?

5.Monika purchased 5 put option contracts at an option premium of $1.80 and a strike price of $52.00. At expiration, the stock price was $48.00 What is Monika's percentage return?

6.Gerold purchased 8 call option contracts on Eastward Bound stock at a strike price of $36. The option premium was $.80. At expiration, Eastward stock was valued at $39.40 a share. What is Gerold's percentage return?

7.Travis purchased a 2 call options with a strike price of $70. He paid a total of $600 for the 2 contracts. What is his break-even stock price?

8.Russ paid $1000 to purchase 5 put options with a strike price of $60. What is the break-even stock price?

9.A 6-month call has a strike price of $40. The underlying stock is priced at $45.00 and the option premium on the call is $7.20. What is the per share time value of the call?

10.A 6-month put has a strike price of $32.50. The underlying stock's price is $33.10. What is intrinsic value of this put?