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)
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Underlying stock price =$75.95
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|
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Expiration
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Strike
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Call
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Put
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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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