The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,210. Exercise Price $1,210 1,310 1,410 Expiration Date July 2018 Call Price Put Price $161.90 $53.56 104.10 96.10 62.65 156.15 Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $1,305. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) a. Call option with exercise price of $1,210 b. Put option with exercise price of $1,210 C. Call option with exercise price of $1,310 d. Put option with exercise price of $1,310 e. Call option with exercise price of $1,410 f. Put option with exercise price of $1,410 Payoff Profit
The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,210. Exercise Price $1,210 1,310 1,410 Expiration Date July 2018 Call Price Put Price $161.90 $53.56 104.10 96.10 62.65 156.15 Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming that the stock price on the expiration date is $1,305. (Negative amounts should be indicated by a minus sign. Round your "Profit" answers to 2 decimal places.) a. Call option with exercise price of $1,210 b. Put option with exercise price of $1,210 C. Call option with exercise price of $1,310 d. Put option with exercise price of $1,310 e. Call option with exercise price of $1,410 f. Put option with exercise price of $1,410 Payoff Profit
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:The following table lists the options on Amazon shares in January 2018 when Amazon stock was selling for $1,210.
Exercise
Price
$1,210
1,310
1,410
Expiration Date
July 2018
Call Price
$161.90
104.10
62.65
a. Call option with exercise price of $1,210
b. Put option with exercise price of $1,210
C.
Call option with exercise price of $1,310
d. Put option with exercise price of $1,310
e. Call option with exercise price of $1,410
f. Put option with exercise price of $1,410
Use the data in the table to calculate the payoff and the profits for investments in each of the following July maturity options, assuming
that the stock price on the expiration date is $1,305. (Negative amounts should be indicated by a minus sign. Round your "Profit"
answers to 2 decimal places.)
Put Price
$53.56
96.10
156.15
Payoff
Profit
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