Suppose you buy 40 February 100 call option contracts. Hendreeks stock is sellin

Question

Suppose you buy 40 February 100 call option contracts. Hendreeks stock is selling for $104.30 per share on the expiration date. How much is your options investment worth? What if the stock price is $100.20 on the expiration date? (Do not round intermediate calculations. Omit the "$" 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

If the Stock price at expiration=s 104.3 Strike price=X= 100 Value of a call option=Max (S-X,0)=(104.30-100) 4.3 Number of shares per contract= 100 Number of contracts 40 Value of option investment= 40*100*4.30 17200 If the Stock price at expiration=s Strike price=X= 100.2 Value of a call option=Max (S-X,0)=(100.20-100) 0.2 Number of shares per contract= 100 Number of contracts 40 Value of option investment= 40*100*.20 800

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