Calculate the payoff and the profits for investments

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Reference no: EM13853806

The following table lists prices of Apple options in April 2013 when Apple stock was selling for $420.

Expiration Date

Exercise
Price

Call
Price

Put
Price

July 2013

S390

S43.16

S14.60

 

420

25.75

27.85

 

450

14.20

45.90

Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $420. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round "Profit" answers to 2 decimal places.

 

 

Payoff

Profit

a.

Call option with exercise price of 5390

$

$

b.

Put option with exercise price of S390

 

 

c.

Call option with exercise price of S420

 

 

d.

Put option with exercise price of S420

 

 

e.

Call option with exercise price of S450

 

 

f.

Put option with exercise price of S450

 

 

Reference no: EM13853806

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