value 0.00 points Refer to Figure 15.1, which lists the prices of various Facebo

Question

value 0.00 points Refer to Figure 15.1, which lists the prices of various Facebook options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following Oct-14 expiration options on a single share, assuming that the stock price on the expiration date is $76. (Leave no cells blank- be certain to enter "O" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.) Payoff a.Call option, X- 75 b.Put option, X-75 c.Call option, X-80 d.Put option, X 80 References eBook & Resources

Explanation / Answer

Payoff = 76 - X Profit/Loss a. Call option, X = 75 1 -2.95 b. Put option, X = 75 0 -3.01 c. Call option, X = 80 0 -1.65 d. Put option, X = 80 4 -1.72 a) Payoff - Call Option = 1 - 3.95 -2.95 b) Payoff - Put Option = 1 - 3.01 -3.01 c) Payoff - Call Option = 1 - 1.65 -1.65 d) Payoff - Put Option = 4 - 5.72 -1.72

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