Apple Inc. is currently trading at $150. The table below gives some information on some of the
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Apple Inc. is currently trading at $150. The table below gives some information on some of the options available on Apple.
| Type | Expiration | Strike Price | Price/Premium |
#1 | Call | 30 days | $150 | $2.5 |
#2 | Call | 30 days | $160 | $1.5 |
#3 | Call | 60 days | $150 | $3.5 |
#4 | Call | 60 days | $160 | $3.0 |
#5 | Put | 30 days | $150 | $2.25 |
#6 | Put | 30 days | $110 | $1.25 |
#7 | Put | 60 days | $150 | $2.75 |
#8 | Put | 60 days | $110 | $1.75 |
1) If in 30 days the price of Apple Inc. is $150, what will be the payoff of option #1?
2) If in 30 days, the price of Apple Inc. is $160, what will be the profit of option #5?
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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