Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $43.

Option	Expiration	Strike Price	Calls		Puts
			Volume	Last	Volume	Last
Macrosoft	February	45	101	1.83	56	2.83
	March	45	77	2.07	38	3.24
	May	45	38	2.35	27	3.66
	August	45	19	2.56	19	3.70

a.	Suppose you buy 26 contracts of the February 45 call option. How much will you pay, ignoring commissions?

Cost

Suppose you buy 26 contracts of the February 45 call option. Macrosoft stock is selling for $46 per share on the expiration date.

b-1.	How much is your options investment worth?
b-2.	What if the terminal stock price is $45

b-1. Payoff if stock price is $46
b-2. Payoff if stock price is $45

Suppose you buy 26 contracts of the August 45 put option.

c-1.	What is your maximum gain?
c-2.	On the expiration date, Macrosoft is selling for $39 per share. How much is your options investment worth?
c-3.	On the expiration date, Macrosoft is selling for $39 per share. What is your net gain?

c-1. Maximum gain
c-2. Position value
c-3. Net gain

Suppose you sell 26 of the August 45 put contracts.

d-1.	What is your net gain or loss if Macrosoft is selling for $40 at expiration? (Enter your answer as a positive value.)
d-2.	What is your net gain or loss if Macrosoft is selling For $47 at expiration? (Enter your answer as a positive value.)
d-3.	What is the break-even stock price? (Round your answer to 2 decimal places, e.g., 32.16.)

d-1.	Loss
d-2.	Gain
d-3.	Break-even stock price