Use the option quote information shown below to answer the questions that follow. The stock is currently selling for $31.

Option and						Calls						Puts
NY Close	Expiration			Strike Price		Vol.			Last			Vol.			Last
Macrosoft
		February		32			89			.63			44			1.63
		March		32			65			.87			26			2.04
		May		32			26			1.15			15			2.46
		August		32			7			1.36			7			2.50

a. Suppose you buy 14 contracts of the February 32 call option. How much will you pay, ignoring commissions? (Do not round intermediate calculations.) Cost $ Suppose you buy 14 contracts of the February 32 call option and Macrosoft stock is selling for $34 per share on the expiration date. b-1. How much is your options investment worth? (Do not round intermediate calculations.) Payoff $ b-2. What if the terminal stock price is $33? (Do not round intermediate calculations.) Payoff $ Suppose you buy 14 contracts of the August 32 put option. c-1. What is your maximum potential gain? (Do not round intermediate calculations.) Maximum gain $ c-2. On the expiration date, Macrosoft is selling for $27 per share. How much is your options investment worth? (Do not round intermediate calculations.) Position value $ c-3. On the expiration date, Macrosoft is selling for $27 per share. What is your net gain? (Do not round intermediate calculations.) Net gain $ Suppose you sell 14 of the August 32 put contracts. d-1. What is your net gain or loss if Macrosoft is selling for $29 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.) (Click to select) Gain Loss $ d-2. What is your net gain or loss if Macrosoft is selling for $35 at expiration? (Input your answer as a positive value. Do not round intermediate calculations.) (Click to select) Gain Loss $ d-3. What is the break-even price, that is, the terminal stock price that results in zero profit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even $

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