1. Strike Calls Puts ...
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Accounting
1.
| Strike | Calls | Puts | |||||
| Close | Price | Expiration | Vol. | Last | Vol. | Last | |
| Hendreeks | |||||||
| 103 | 100 | Feb | 72 | 5.20 | 50 | 2.40 | |
| 103 | 100 | Mar | 41 | 8.40 | 29 | 4.90 | |
| 103 | 100 | Apr | 16 | 10.68 | 10 | 6.60 | |
| 103 | 100 | Jul | 8 | 14.30 | 2 | 10.10 | |
a. Suppose you write 30 of the Apr 100 put contracts. What is your net gain or loss if Hendreeks is selling for $97.20 at expiration? For $110?
b. What is the break-even price, that is, the terminal stock price that results in a zero profit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. A put option with a strike price of $35 sells for $6.10. The option expires in two months and the current stock price is $38.00. If the risk-free interest rate is 3 percent, what is the price of a call option with the same strike price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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