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Profits and loss

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1.value;10.00 points;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;Additional Requirements;Level of Detail: Show all work

 

Paper#17900 | Written in 18-Jul-2015

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