Problem 22.3 Calculating PayoffsUse the option quote information shown here to anower the questions that follow. The stock is carrently selling for $38\table[[Option and NY CloseExpiration,Calls,Puts],[Strike,Vol,Last,Vo,Last],[Macrosaft],[Febrauary40,95,1.33,51,2.33],[March,40,72,1.59,33,2.74],[May,40,33,1.85,22,3.16],[Augast,40,14,2.06,14,3.20]]a. Suppose you buy 21 contracts of the February 40 call option. How much will you pay. ignoring commissions?Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.32. Do not le any cell blank - enter "0" wherever required.2. Suppose you buy 21 contracts of the February 40 call eption and Macrosolt stock is selling for $41 per share on the expration date.b-1. How mach is your eptions investment worth?Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32. Do not leaany cell blank - eater "V" wherever required.3. b.2. What if the terminal stock price is 540?Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32. Do not leav any cell biank - enter "V" wherever required.4. Suppose you buy 21 contracts of the Auguit 40 put option.c.1. What is your maximum gain?Note: Do not found intermediate calculations and round your answer to the narest whole number, e.g.,32. Do not leave any cett blank - enter "" wherever required.5. c.2. On the expration date, Macrosoff is selling for $3M per share. How mach is your eptions investment worth?Note: Do not round intermediate calculations and round your answer to the navest whole mumber, e.g.,32. Do not leave any cell blank - enter "P" wherever required.6. c .3. On the explation date, Macrosof is selling for 534 per share. What in your net gain?Note: Do not roond intermediate calculations and rownd your answer to the mearest whole number, e.g.,32. Do not leave any cell blank - enter "Q" wherever required.7. Suppose you sell 21 of the August 40 put contracts.d.1. What is your net pain or loss 8 Macrosoft is selling for 535 at expration?Note: A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g.32. Do not leave any cell blank - enter "T" afterever required.8 d .2. What is your net gain or loss 11 Macrosoth is selling for 5.2 at explation?Note: A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.9.32. Do not leave any cell blank - enter "T"== herrever required.81%-