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
Please submit these to the drop box by the date to be specified.