Question: use the option quote information shown below to answer the...
Use the option quote
information shown below to answer the questions that follow. The
stock is currently selling for $45.
|NY Close||Expiration||Strike Price||Vol.||Last||Vol.||Last|
Suppose you buy 28 contracts of the February 47 call option and
Macrosoft stock is selling for $48 per share on the expiration
b-1. How much is your options investment worth? (Do not round intermediate calculations.)
b-2. What if the terminal stock price is $47? (Do not round intermediate calculations.)
Now suppose you sell 28 of the August 47 put contracts. What is the break-even price, that is, the terminal stock price that results in zero profit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)