Purchase price $2.15
Exercised Price: $37.50
Currently Trading at $37.00
In order to make the decision on the best course of action, two tables of calculations are needed:
1. One table for calculations on:
a. The possible outcomes of buying a call option for $2.15, exercise price $37.50
b. Possible price ranges for the underlying stock: 25 30 35 40 45 50 55 60
2. The possible outcomes of buying a put option for $1.65, exercise price $37.50
a. Possible price ranges for the underlying stock: 25 30 35 40 45 50 55 60
b. A second table for calculations on:
Deliverables
- A worksheet showing your calculations of the outcomes for the suggested stock price ranges for the call option buying strategy;
- A worksheet showing your calculations of the outcomes for the suggested stock price ranges for the put option buying strategy.
Please submit these to the drop box by the date to be specified.