Question: Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $40. Calls Puts Strike Price Vol.


Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $40. Calls Puts Strike Price Vol. Option Expiration Macrosoft Feb Mar Last 1.53 42 177 Last 2.53 2.94 3.36 3.40 42 42 42 May Aug 35 16 2.05 2.26 a. Suppose you buy 23 contracts of the February 42 call option. How much will you pay, ignoring commissions? Cost $ 3,519 Suppose you buy 23 contracts of the February 42 call option. Macrosoft stock is selling for $43 per share on the expiration date. b-1. How much is your options investment worth? b-2. What if the terminal stock price is $42? b-1. Payoff if stock price is $43 b-2. Payoff if stock price is $42 $ $ 1,219 (3,519) Suppose you buy 23 contracts of the August 42 put option. c-1. What is your maximum gain? C-2. On the expiration date, Macrosoft is selling for $36 per share. How much is your options investment worth? C-3. On the expiration date, Macrosoft is selling for $36 per share. What is your net gain? C-1. Maximum gain c-2. Position value c-3. Net gain Suppose you sell 23 of the August 42 put contracts. d-1. What is your net gain or loss if Macrosoft is selling for $37 at expiration? (Enter your answer as a positive value.) d-2. What is your net gain or loss if Macrosoft is selling For $44 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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