Question

Refer to Eigure 15.1 which lists the prices of various Microsoft options Use the data in the figure to calculate the payoff and the proft/loss for investments in each of the following July 2017 expiration options on a single share, assuming that the stock price on the expiration date is S76 (Leave no cells blenk . be certain to enter-0-wherever required. Lon amount iheul be instated。,a minus sign. Round "Profit/Loss" to 2 decimal places Payoff Profit Loss Call optonX Put optionX Pit option 10.00 Microsoft (MSFT Underlying stock price = $71 .75 Put ExpirationStrikeCall June 16. 2017 70 202 0.24 0.90 0 67 2401 0 58 1.32 70 uly 7. 2017 July, 7,2017

Answer 1

	Cost	Payoff	Profit/Loss
a). Call option, X = 70	2.40	6	3.60
b). Put option, X = 70	0.58	0	-0.58
c). Call option, X = 72	1.15	4	2.85
d). Put option, X = 72	1.32	0	-1.32
e). Call option, X = 74	0.42	2	1.58
f). Put option, X = 74	2.59	0	-2.59