Use the data in the figure to calculate the payoff

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Refer to Figure 15.1, which lists the prices of various IBM options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following January 2012 expiration options, assuming that the stock price on the expiration date is $165. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)

(Figure 15.1)
IBM Underlying stock price:166.76
Experation Strike Last Volume Open Interest Last Volume Open Interest
Sep 2011 160 9.15 796 1835 2.62 1271 4298
Oct 2011 160 11.95 301 2396 5.35 296 7443
Jan 2012 160 15.00 101 7890 9.40 102 4920
Apr 2012 160 17.35 111 122 13.30 4 71
Sep 2011 165 5.80 1805 3542 4.10 1711 5085
Oct 2011 165 8.70 329 3866 7.00 131 2651
Jan 2012 165 11.70 93 4045 10.85 303 4466
Apr 2012 165 14.30 58 781 - - 54
Sep 2011 170 3.00 3053 7959 6.20 2744 12435
Oct 2011 170 5.86 457 7506 9.25 148 4584
Jan 2012 170 8.93 73 6876 13.00 58 2929
Apr 2012 170 11.32 36 58 - - 52

Payoff Profit/Loss
a. Call option, X = 160
b. Put option, X = 160
c. Call option, X = 165
d. Put option, X = 165
e. Call option, X = 170
f. Put option, X = 170

Reference no: EM13539012

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