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The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling...

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Finance

The following table lists prices of Alphabet options in December2015 when Alphabet stock was selling for $470.

Expiration DateExercise PriceCall PricePut Price
March 2016$440$43.66$15.10
47026.7527.90
47514.7046.40

Use the data in the table to calculate the payoff and theprofits for investments in each of the following June maturityoptions, assuming that the stock price on the expiration date is$450. (Negative amounts should be indicated by a minussign. Round your answers to 2 decimal places.)

PayoffProfit
a.Call option with exercise price of$440
b.Put option with exercise price of$440
c.Call option with exercise price of$470
d.Put option with exercise price of$470
e.Call option with exercise price of$500
f.Put option with exerciseprice of $500

This is an exact screenshot of the question. This same questionwith different number was answer in the past on Chegg's website.This is all the info. Please pass this question to another Q&Aexpert if this continues to be a problem. Thanks

Answer & Explanation Solved by verified expert
3.9 Ratings (470 Votes)
Call option Payoff and Profit can be calculated with following equationsPut option Payoff and Profit can be calculated with    See Answer
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