Use the table below showing the available June 2021 options for Milano Internal Corp (MIC), which currently trades for $109 57, to answer the following questions Assume at expiration that MIC trades for $127 Ignore taxes and transaction costs 1 How much will someone pay to buy a call option with $110 strike price a put option with $110 strike price 2 What is the net profit or loss in dollars per share for someone who buys the $115 straddle Calls Puts Last Change Bid Ask Volume Open Int Strike Last Change Bid Ask Volume Open Int of07 31 20 400 PM ET 11 45 4 60 10 95 112 Last Trade 109 57 12 110 00 25 264 115 00 13 22 14 10 17 50 150 14 50 12 50 158 9 92 0 91 9 00 13 61 17 05 20 00 0 131 7 81 2 19 7 20 10 50 3 41 120 00 20 24 3 64 20 05 22 85 30 111 0 55 0 175 00 64 00 69 00 0

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Question: Use the table below showing the available June 2021 options for Milano Internal Corp (MIC), which currently trades for $109.57, to answer the following questions.

Use the table below showing the available June 2021 options for Milano Internal Corp (MIC), which currently trades for $109.57, to answer the following questions. Assume at expiration that MIC trades for $127. Ignore taxes and transaction costs.

1. How much will someone pay to buy:

a call option with $110 strike price?
a put option with $110 strike price?

2. What is the net profit or loss in dollars per share for someone who buys the $115 straddle?

Calls Puts Last Change Bid Ask Volume Open Int. Strike Last Change Bid Ask Volume Open Int of07/31/20 400 PM ET 11.45 -4.60 10.95 112 Last Trade 109.57 12 110.00 25 264 115.00 13.22 14.10 17.50 150 14.50 12.50 158 9.92 -0.91 9.00 13.61 17.05 20.00 0 131 7.81 -2.19 7.20 10.50 3 41 120.00 20.24 +3.64 20.05 22.85 30 111 0.55 0 175.00 64.00 69.00 0

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