Solution-Calculating option payoffs

Calculating option payoffs

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Reference no: EM133060059

Use the following options quotations to answer Problems 1 though 3:

			Calls		Puts
Close	Strike Price	Expiration	Vol.	Last	Vol.	Last
Hendreeks
103	100	Feb	72	5.20	50	2.40
103	100	Mar	41	8.40	29	4.90
103	100	Apr	16	10.68	10	6.60
103	100	Jul	8	14.30	2	10.10

Option Quotes (LO1). Suppose you buy 50 April 100 call option contracts. How much will you pay, ignoring commissions?
Calculating Option Payoffs (LO2, CFA2). In problem 1, suppose that Hendreeks stock is selling for $105.70 per share on the expiration date. How much is your options investment worth? What if the stock price is $101.60 on the expiration date?
Calculating option Payoffs (LO2, CFA2). Suppose you buy 30 March 100 put option contracts. What is your maximum gain? On the expiration date, Hendreeks is selling for $84.60 per share. How much is your options investment worth? What is your net gain?

Reference no: EM133060059

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Calculating option payoffs

Reference no: EM133060059

Reference no: EM133060059

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