Strike 95 100 105 95 100 105 Expiration 18-Jan-2019 18-Jan-2019 18-Jan-2019 8-Feb-2019 8-Feb-2019 8-Feb-2019 Note: Microsoft stock on this day was $101.51. Call 7.65 3.81 1.45 9.50 5.60 3.08 Put 0.98 2.20 4.79 2.86 3.92 6.35 Table 2.6 Prices of stock options on Microsoft, January 2, 2019

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 4.10C
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Question

1. If you had bought the January put with exercise price $105, will you exercise your put?

2. What is the profit (loss) on your position? 

 

Expiration
18-Jan-2019
18-Jan-2019
18-Jan-2019
8-Feb-2019
8-Feb-2019
8-Feb-2019
Strike
95
100
105
95
100
105
Call
7.65
3.81
1.45
9.50
5.60
3.08
Note: Microsoft stock on this day was $101.51.
Source: Compiled from data downloaded from Yahoo! Finance.
Put
0.98
2.20
4.79
2.86
3.92
6.35
Table 2.6
Prices of stock
options on Microsoft,
January 2, 2019
Transcribed Image Text:Expiration 18-Jan-2019 18-Jan-2019 18-Jan-2019 8-Feb-2019 8-Feb-2019 8-Feb-2019 Strike 95 100 105 95 100 105 Call 7.65 3.81 1.45 9.50 5.60 3.08 Note: Microsoft stock on this day was $101.51. Source: Compiled from data downloaded from Yahoo! Finance. Put 0.98 2.20 4.79 2.86 3.92 6.35 Table 2.6 Prices of stock options on Microsoft, January 2, 2019
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