Question: Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $42. Calls Puts Strike Expiration Price



Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $42. Calls Puts Strike Expiration Price Last Vol. Last Option Macrosoft Feb 44 100 1.73 55 2.73 Mar 44 76 1.97 37 3.14 May 44 37 2.25 26 3.56 Aug 44 18 2.46 18 3.60 a. Suppose you buy 25 contracts of the February 44 call option. How much will you pay, ignoring commissions? Cost Suppose you buy 25 contracts of the February 44 call option. Macrosoft stock is selling for $45 per share on the expiration date. b-1. How much is your options investment worth? Vol. b-2. What if the terminal stock price is $44? b-1. Payoff if stock price is $45 b-2. Payoff if stock price is $44 Suppose you buy 25 contracts of the August 44 put option. c-1. What is your maximum gain? c-2. On the expiration date, Macrosoft is selling for $38 per share. How much is your options investment worth? c-3. On the expiration date, Macrosoft is selling for $38 per share. What is your net gain? c-1. Maximum gain c-2. Position value c-3. Net gain Suppose you sell 25 of the August 44 put contracts. d-1. What is your net gain or loss if Macrosoft is selling for $39 at expiration? (Enter your answer as a positive value.) d-2. What is your net gain or loss if Macrosoft is selling For $46 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. d-2. d-3. Break-even stock price
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