2. Calculating Payoffs Use the option quote information shown below to answer the questions that follow. The stock is currently selling for $93. Calls Puts Option and Strike NY Close Expiration Price Vol. Last Vol. Last Macrosoft Feb Mar May Aug ៖ ៖ ៖ ៖ 90 85 2.85 1.13 90 61 5.25 22 4.05 90 22 7.78 11 5.94 90 3 10.20 3 9.12 420 a. Suppose you buy 10 contracts of the February 90 call option. How much will you pay, ignoring commissions? b. In part (a), suppose that Macrosoft stock is selling for $96 per share on the expiration date. How much is your options' investment worth? What if the terminal stock price is $107? Explain. CHAPTER

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