Please refer to HW4_data.doc for quotes on Intel stock options Consider the following positions on the Intel stock. For each of the positions choose the strike X- S52.5. Choose May option. a. Long 1 call contract. b. Short 1 put c. Long 1 call short 1 put. d. Long 1 call + long 1 put. e. Long 1 call with strike S52.5 and short 1 call with strike S55 Assume that you enter and close the positions at the mid point of bid-ask spread For each position (a-e) answer the following questions. Assume that you trade each contract on March 19 (i.e. enter the positions) 1. Close out your positions on March 26. Calculate your net dollar gain or loss 2. Now assume that you exercise options on March 26. For each position compute your net gain or loss 3. For each position draw the payoff diagram, marking the strikes and the stock price on March 26 clearly, as well as your payoff. March 19 INTC INTEL CORP) 54.19 +0.07 Net Bid Ask Vol Open In en Puts Net Bid Ask Vol INTC 50.000 4.4 0 4.45 4.6 208 29379 19 Apr 50 INTC 50.000 0.2 +0.005 0.19 0.22 1,151 22978 INTC 52.5035+0.055 2.36 2.43 242 40803 19 Apr 52.5 INTC 52.500 0.6 +0.01 0.59 0.61 514 6515 INTC 55.000 0.87 +0.045 0.90.92 747 50378 19 Apr 55 INTC 55.0001.64 +0.02 1.55 1.62 194 6937 INTC 57.500 0.19+0.005 0.2 0.23 52 20756 19 Apr 57.5 INTC 57.500 0 0 3.35 3.5 0 185 INTC 50.000 4.92-0.005 4.95 5.05 29 1267 19 May 50 INTC 50.0000.72 -0.06 0.76 0.8 192 3277 INTC 52.500 3.15 +0.075 3.1 3.2 328 282319 May 52.5 INTC 52.500 1.5 0.02 1.44 1.491,739 4138 INTC 55.000 1.67 01.7 1.76 1,254 14449 19 May 55 INTC 55.0002.51-0.11 2.55 2.63 629 2045 INTC 57.500 0.81 +0.04 0.79 0.83 369 16018 19 May 57.5 INTC 57.500 00 4.15 4.3 0 115 March 26 INTC INTEL CORP) 53.44 -0.17 Net Bid Ask Vol Open In en Puts Last Sale Net Bid Ask Vol INTC 50.000 3.75 +0.5 3.75 3.85 56 29088 INTC 52.500 1.76 +0.31 1.77 1.79 98 40227 19 Apr 52.5 NTC 52.500 0.75 0325 0.73 0.75 162 7836 INTC 55.000 0.54 +0.125 0.52 0.55 2,717 47275 19 Apr 55 INTC 55.000 2.13 0415 1.97 2.04 10 7490 INTC 57.500 0.1+0.025 0.08 0.1 3720847 19 Apr 57.5 INTC 57.500 0 INTC 50.000 4.45 +0.475 4.35 4.45 59 1377 19 May 50 INTC 50.000 1.01 -0.18 0.96 0.99 476 4168 INTC 52.500 2.68 0.32 2.67 2.72 92 2728 19 May 52.5 INTC 52.500 1.81-0.32 1.77 1.81 766571 INTC 55.000 1.39 +0.165 1.41 1.44 50513573 19 May 55 INTC 55.000 3.11 0.415 3 3.1132244 INTC 57.500 0.64 +0.095 0.63 0.65 408 28296 19 May 57.5 INTC 57.500 4.75 0.625 4.75 4.85 10344 19 Apr 50 INTC 50.000 0.25 0.125 0.23 0.24 347 22985 0 4.05 4.15 0 267 Please refer to HW4_data.doc for quotes on Intel stock options Consider the following positions on the Intel stock. For each of the positions choose the strike X- S52.5. Choose May option. a. Long 1 call contract. b. Short 1 put c. Long 1 call short 1 put. d. Long 1 call + long 1 put. e. Long 1 call with strike S52.5 and short 1 call with strike S55 Assume that you enter and close the positions at the mid point of bid-ask spread For each position (a-e) answer the following questions. Assume that you trade each contract on March 19 (i.e. enter the positions) 1. Close out your positions on March 26. Calculate your net dollar gain or loss 2. Now assume that you exercise options on March 26. For each position compute your net gain or loss 3. For each position draw the payoff diagram, marking the strikes and the stock price on March 26 clearly, as well as your payoff. March 19 INTC INTEL CORP) 54.19 +0.07 Net Bid Ask Vol Open In en Puts Net Bid Ask Vol INTC 50.000 4.4 0 4.45 4.6 208 29379 19 Apr 50 INTC 50.000 0.2 +0.005 0.19 0.22 1,151 22978 INTC 52.5035+0.055 2.36 2.43 242 40803 19 Apr 52.5 INTC 52.500 0.6 +0.01 0.59 0.61 514 6515 INTC 55.000 0.87 +0.045 0.90.92 747 50378 19 Apr 55 INTC 55.0001.64 +0.02 1.55 1.62 194 6937 INTC 57.500 0.19+0.005 0.2 0.23 52 20756 19 Apr 57.5 INTC 57.500 0 0 3.35 3.5 0 185 INTC 50.000 4.92-0.005 4.95 5.05 29 1267 19 May 50 INTC 50.0000.72 -0.06 0.76 0.8 192 3277 INTC 52.500 3.15 +0.075 3.1 3.2 328 282319 May 52.5 INTC 52.500 1.5 0.02 1.44 1.491,739 4138 INTC 55.000 1.67 01.7 1.76 1,254 14449 19 May 55 INTC 55.0002.51-0.11 2.55 2.63 629 2045 INTC 57.500 0.81 +0.04 0.79 0.83 369 16018 19 May 57.5 INTC 57.500 00 4.15 4.3 0 115 March 26 INTC INTEL CORP) 53.44 -0.17 Net Bid Ask Vol Open In en Puts Last Sale Net Bid Ask Vol INTC 50.000 3.75 +0.5 3.75 3.85 56 29088 INTC 52.500 1.76 +0.31 1.77 1.79 98 40227 19 Apr 52.5 NTC 52.500 0.75 0325 0.73 0.75 162 7836 INTC 55.000 0.54 +0.125 0.52 0.55 2,717 47275 19 Apr 55 INTC 55.000 2.13 0415 1.97 2.04 10 7490 INTC 57.500 0.1+0.025 0.08 0.1 3720847 19 Apr 57.5 INTC 57.500 0 INTC 50.000 4.45 +0.475 4.35 4.45 59 1377 19 May 50 INTC 50.000 1.01 -0.18 0.96 0.99 476 4168 INTC 52.500 2.68 0.32 2.67 2.72 92 2728 19 May 52.5 INTC 52.500 1.81-0.32 1.77 1.81 766571 INTC 55.000 1.39 +0.165 1.41 1.44 50513573 19 May 55 INTC 55.000 3.11 0.415 3 3.1132244 INTC 57.500 0.64 +0.095 0.63 0.65 408 28296 19 May 57.5 INTC 57.500 4.75 0.625 4.75 4.85 10344 19 Apr 50 INTC 50.000 0.25 0.125 0.23 0.24 347 22985 0 4.05 4.15 0 267