Required: Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the...
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Accounting
Required:
Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following December 2019 expiration options on a single share, assuming that the stock price on the expiration date is $140. (Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)
Microsoft (MSFT)
Underlying stock price = $139.69
Expiration
Strike
Call
Put
November 15, 2019
135
6.78
1.89
November 15, 2019
140
3.60
3.70
November 15, 2019
145
1.50
6.65
December 20, 2019
135
7.93
3.28
December 20, 2019
140
4.88
5.30
December 20, 2019
145
2.71
8.10
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