Underlying Microsoft (MSFT) Price: 295.71 Expiration Strike Call Put 1-Oct-2021 290 9.43 3.63 1-Oct-2021 300 3.60 7.82 1-Oct-2021 310 1.08 15.28 17-Dec-2021 290 17.25 11.72 17-Dec-2021 300 11.75 16.25 17-Dec-2021 310 7.62 22.05 Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following December 17 expiration options, assuming that the stock price on the expiration date is $300. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. a. Call option, X = $290 b. Put option, X = $290 c. Call option, X = $300 d. Put option, X = $300 e. Call option, X = $310 f. Put option, X = $310 Payoff Profit or Loss

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Underlying
Microsoft (MSFT)
Price: 295.71
Expiration
Strike
Call
Put
1-Oct-2021
290
9.43
3.63
1-Oct-2021
300
3.60
7.82
1-Oct-2021
310
1.08
15.28
17-Dec-2021
290
17.25
11.72
17-Dec-2021
300
11.75
16.25
17-Dec-2021
310
7.62
22.05
Transcribed Image Text:Underlying Microsoft (MSFT) Price: 295.71 Expiration Strike Call Put 1-Oct-2021 290 9.43 3.63 1-Oct-2021 300 3.60 7.82 1-Oct-2021 310 1.08 15.28 17-Dec-2021 290 17.25 11.72 17-Dec-2021 300 11.75 16.25 17-Dec-2021 310 7.62 22.05
Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profits for
investments in each of the following December 17 expiration options, assuming that the stock price on the expiration date is $300.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter
"O" wherever required. Negative amounts should be indicated by a minus sign.
a. Call option, X = $290
b. Put option, X = $290
c. Call option, X = $300
d. Put option, X = $300
e. Call option, X = $310
f. Put option, X = $310
Payoff
Profit or Loss
Transcribed Image Text:Use Figure 20.1, which lists prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profits for investments in each of the following December 17 expiration options, assuming that the stock price on the expiration date is $300. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. a. Call option, X = $290 b. Put option, X = $290 c. Call option, X = $300 d. Put option, X = $300 e. Call option, X = $310 f. Put option, X = $310 Payoff Profit or Loss
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