Question: 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

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?

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