Question: Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You bought one contract of the $115 strike call. At contract expiration, the shares
Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You bought one contract of the $115 strike call. At contract expiration, the shares of CAT traded at $140. What is your profit (or loss) on the strategy? State your answer in total dollar terms (i.e., total out-of-pocket cost not factoring transaction costs), not contract-level terms. Your answer should be a dollar amount with two decimal places of accuracy. Losses should be entered as a negative number.
(Note on viewing table below: You may have to use a horizontal scrollbar to see all of the columns in the table below.)
| CAT Option Chain | ||||||||||||
| Month: Nov 2020 | ||||||||||||
| Calls | Puts | |||||||||||
| Last | Change | Bid | Ask | Volume | Open Int. | Strike | Last | Change | Bid | Ask | Volume | Open Int. |
| 12.40 | -- | 14.80 | 15.45 | -- | 32 | 100.00 | 10.70 | -0.27 | 10.55 | 10.90 | 12 | 426 |
| 11.75 | -- | 12.05 | 12.65 | -- | 154 | 105.00 | 13.00 | -0.65 | 12.85 | 13.25 | 28 | 403 |
| 10.05 | +0.74 | 9.75 | 10.10 | 10 | 211 | 110.00 | 15.54 | -- | 15.50 | 15.95 | -- | 308 |
| 7.70 | +1.70 | 7.70 | 8.10 | 2 | 622 | 115.00 | 18.64 | -- | 18.40 | 18.95 | -- | 292 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
