Use the option quote information shown here to answer the questions that follow. The stock is...

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Finance

Use the option quote information shown here to answer thequestions that follow. The stock is currently selling for $40.
                                                                                   Calls                                       Puts
Option             Expiration         StrikePrice      Volume           Last                 Volume           Last
Microsoft         Feb                 38                   85                   2.35                 37                  0.24
                       March             38                   61                   3.15                 22                   0.93
                       May                38                   22                   4.87                 11                   2.44
                       August            38                   3                     6.15                 3                     3.56
A) Suppose you buy 10 contracts of the February 38 call option.How much will you pay, ignoring transaction costs?
B) In part A), Microsoft is selling for $43 per share on theexpiration date. How much is your options investment worth?
C) Suppose you buy 10 contracts of the August 38 put option.What is your maximum gain? On the expiration date, Microsoft isselling for $32 per share. How much is your options investmentworth? What is your net gain?
D) In part C), suppose you sell 10 of the August 38 putcontracts. What is your net gain or net loss if Microsoft isselling for $34 at expiration What is the break-even price, thatis, the terminal price that results in a zero profit?

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Use the option quote information shown here to answer thequestions that follow. The stock is currently selling for $40. Calls PutsOption Expiration StrikePrice Volume Last Volume LastMicrosoft Feb 38 85 2.35 37 0.24 March 38 61 3.15 22 0.93 May 38 22 4.87 11 2.44 August 38 3 6.15 3 3.56A) Suppose you buy 10 contracts of the February 38 call option.How much will you pay, ignoring transaction costs?B) In part A), Microsoft is selling for $43 per share on theexpiration date. How much is your options investment worth?C) Suppose you buy 10 contracts of the August 38 put option.What is your maximum gain? On the expiration date, Microsoft isselling for $32 per share. How much is your options investmentworth? What is your net gain?D) In part C), suppose you sell 10 of the August 38 putcontracts. What is your net gain or net loss if Microsoft isselling for $34 at expiration What is the break-even price, thatis, the terminal price that results in a zero profit?