Homework Question Help #1

Question 437 (8 points). Cain entered into long call option contracts on a stock with a strike price of $225. The options expire in 3 months. The current stock price is $221.50. The cost of the call options is $1.35. A. Profit/Loss Table (4 points). Develop a profit/loss table of Cain's total profit. Use a stock price range of $200 to $240 in $5 increments. Each contract is for 100 shares and he purchased 5 contracts. Include appropriate column headings (at a minimum: share price, strike price, option cost, and profit but you may include additional columns of information if needed) B. Create a graph of Cain's total profit which corresponds to the values in the table above (4 points) Note: be sure to lobel your axes appropriately, Axis values should be formatted correctly as well