Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $114, and the size of each contract is 100 shares.

			Calls			Puts
Option and TSX Close	Expiration	Strike Price	Vol.	Last		Vol.	Last
Macrosoft	February	110	85	7.60		40	0.60
	March	110	61	8.80		22	1.55
	May	110	22	10.25		11	2.85
	August	110	3	13.05		3	4.70

a. Suppose you buy 10 contracts of the February 110 call option. How much will you pay, ignoring commissions?

You will pay $

b-1. Suppose you buy 10 contracts of the February 110 call option and also suppose that Macrosoft stock is selling for $140 per share on the expiration date. How much is your options investment worth?

Value of option investment $

b-2. Suppose you buy 10 contracts of the February 110 call option and also suppose that Macrosoft stock is selling for $125 per share on the expiration date. How much is your options investment worth?

Value of option investment $

c-1. Suppose you buy 10 contracts of the August 110 put option. What is your maximum gain?

Maximum gain $

c-2. Suppose you buy 10 contracts of the August 110 put option. On the expiration date, Macrosoft is selling for $104 per share. How much is your options investment worth?

Value of option investment $

c-3. Suppose you buy 10 contracts of the August 110 put option. On the expiration date, Macrosoft is selling for $104 per share. What is your net gain?

Net gain $

d-1. Suppose you sell 10 of the August 110 put contracts. What is your net gain or loss if Macrosoft is selling for $103 at expiration? For $132? (Loss should be indicated with a minus sign.)

		Net loss/gain
When the stock price at expiration is $103		$
When the stock price at expiration is $132		$

d-2. Suppose you sell 10 of the August 110 put contracts. What is the break-even pricethat is, the terminal stock price at expiration that results in a zero profit? (Round the answer to 2 decimal places.)

Break-even ST $