Question: Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $ 3 0 . Option and
Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $
Option and NY Close Expiration Strike Price Calls Puts
Volume Last Volume Last
Macrosoft
Febrauary
March
May
August
a
Suppose you buy contracts of the February call option. How much will you pay, ignoring commissions? Do not round intermediate calculations and round your answer to the nearest whole number, eg
Suppose you buy contracts of the February call option and Macrosoft stock is selling for $ per share on the expiration date.
b How much is your options investment worth? Do not round intermediate calculations and round your answer to the nearest whole number, eg
b What if the terminal stock price is $Do not round intermediate calculations and round your answer to the nearest whole number, eg
Suppose you buy contracts of the August put option.
c What is your maximum gain? Do not round intermediate calculations and round your answer to the nearest whole number, eg
c On the expiration date, Macrosoft is selling for $ per share. How much is your options investment worth? Do not round intermediate calculations and round your answer to the nearest whole number, eg
c On the expiration date, Macrosoft is selling for $ per share. What is your net gain? Do not round intermediate calculations and round your answer to the nearest whole number, eg
Suppose you sell of the August put contracts.
d
What is your net gain or loss if Macrosoft is selling for $ at expiration? A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, eg
d What is your net gain or loss if Macrosoft is selling for $ at expiration? A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, eg
d What is the breakeven price that is the terminal stock price that results in a zero profit? Do not round intermediate calculations and round your answer to decimal places, eg
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