Suppose you buy 55 July 100 call option contracts. Hendreeks stock is selling fo

Question

Suppose you buy 55 July 100 call option contracts. Hendreeks stock is selling for $105.90 per share on the expiration date. How much is your options investment worth? What if the stock price is $101.80 on the expiration date? (Do not round intermediate calculations. Omit the "$" sign in your response.)

Calls Puts Strike   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     

Explanation / Answer

Price of July call option = 14.3

Option investment worth= Price of 55 contract = 55*14.3 =786.5

Option payoff at 105.9 =55* Max (105.9-100,0) =324.5

Option payoff at 101.8 = 55*Max (101.8-100,0)= 99

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