Caluculate the payoff and profits for investments in each


Turn back to figure , which lists the prices of various Facebook options.

Use the data in the figure to caluculate the payoff and profits for investments in each of the following November 2014 expiration options, assuming that the stock price on the expiration date is $78.

FACEBOOK (FB)

Underlying stock price =$75.95



Expiration

Strike

Call

Put


14-Oct

75

3.95

3.01


14-Oct

80

1.65

5.72







14-Nov

75

4.85

3.97


14-Nov

80

2.64

6.74


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Financial Management: Caluculate the payoff and profits for investments in each
Reference No:- TGS02826866

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