Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $38.

						Calls							Puts
				Strike
Option	Expiration			Price		Vol.			Last				Vol.			Last
Macrosoft		Feb		40			96			1.33				51			2.33
		Mar		40			72			1.57				33			2.74
		May		40			33			1.85				22			3.16
		Aug		40			14			2.06				14			3.20

a.	Suppose you buy 21 contracts of the February 40 call option. How much will you pay, ignoring commissions?

Cost

$

Suppose you buy 21 contracts of the February 40 call option. Macrosoft stock is selling for $41 per share on the expiration date.

b-1	How much is your options investment worth?

Payoff

$

b-2	What if the terminal stock price is $40?

Payoff

$

Suppose you buy 21 contracts of the August 40 put option.

c-1	What is your maximum gain?

Maximum gain

$

c-2	On the expiration date, Macrosoft is selling for $34 per share. How much is your options investment worth?

Position value

$

c-3	On the expiration date, Macrosoft is selling for $34 per share. What is your net gain?

Net gain

$

Suppose you sell 21 of the August 40 put contracts.

d-1	What is your net gain or loss if Macrosoft is selling for $35 at expiration? (Enter your answer as a positive value.)

(Click to select)LossGain

$

d-2	What is your net gain or loss if Macrosoft is selling For $42 at expiration? (Enter your answer as a positive value.)

(Click to select)GainLoss

$

d-3	What is the break-even stock price? (Round your answer to 2 decimal places, (e.g., 32.16).)

Break-even

$