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Expiration Strike Last Volume Open Interest Last Volume Open Interest Jan 190 4.

ID: 2730645 • Letter: E

Question

Expiration

Strike

Last

Volume

Open Interest

Last

Volume

Open Interest

Jan

190

4.40

815

5697

1.75

507

2496

Feb

190

6.75

402

2808

3.00

3553

10377

Apr

190

8.85

107

1866

5.20

527

2177

Jul

190

10.95

15

645

8.54

6

1142

Jan

195

0.01

2451

11718

0.70

4090

8862

Feb

195

3.65

1337

11902

5.00

860

3156

Apr

195

5.90

1785

2928

7.30

934

1141

Jul

195

8.45

13

5773

10.85

22

3419

a. Calculate the payoff and profit at expiration for the February 190 calls, if you purchase the option at the stated price and at expiration the stock price is $195.

b. Calculate the payoff and profit at expiration for the February 195 puts, if you purchase the option at the stated price and at expiration the stock price is $195.

Expiration

Strike

Last

Volume

Open Interest

Last

Volume

Open Interest

Jan

190

4.40

815

5697

1.75

507

2496

Feb

190

6.75

402

2808

3.00

3553

10377

Apr

190

8.85

107

1866

5.20

527

2177

Jul

190

10.95

15

645

8.54

6

1142

Jan

195

0.01

2451

11718

0.70

4090

8862

Feb

195

3.65

1337

11902

5.00

860

3156

Apr

195

5.90

1785

2928

7.30

934

1141

Jul

195

8.45

13

5773

10.85

22

3419

Explanation / Answer

Answer:a Payoff=195-190=5

Profit=6.75-5=1.75

Answer:b Payoff=195-195=0

Profit/loss=3-0=3 Put not erercised

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