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  3. 1. suppose you buy 10 contracts of the august 124

1. Suppose you buy 10 contracts of the August 124 put option. On the expiration...

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1. Suppose you buy 10 contracts of the August 124 put option. On the expiration date, Macrosoft is selling for $115 per share. What is your net gain?

2. Suppose you sell 10 of the August 124 put contracts. What is your net gain or loss if Macrosoft is selling for $114 at expiration? For $146?

3. Suppose you sell 10 contracts of the August 124 put contracts. What is the break-even pricethat is, the terminal stock price at expiration that results in a zero profit?

Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $136, and the size of each contract is 100 shares. Calls Puts Option and TSX Close Expiration Strike Price Vol. Last Vol. Last February 124 85 6.90 40 0.90 March 124 76 8.40 46 2.00 May 124 46 10.70 23 3.15 August 124 8 13.75 8 5.40

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