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Figure 20.1 lists prices of various IBM options. Use the data in the above figur

ID: 2701990 • Letter: F

Question

Figure 20.1 lists prices of various IBM options. Use the data in the above figure to calculate the payoff and the profits for investments in each of the following Dec expiration options, assuming that the stock price on the expiration date is $124. (Round your answers to 2 decimal places. Negative amount should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "%" sign in your response.)

   

Figure 20.1 lists prices of various IBM options. Use the data in the above figure to calculate the payoff and the profits for investments in each of the following Dec expiration options, assuming that the stock price on the expiration date is $124. (Round your answers to 2 decimal places. Negative amount should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "%" sign in your response.)

Explanation / Answer

a) 400 -375

b) 0 -26

c) 0 -325

d) 100 -2

e) 0 -77

f) 600 245

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