Question 24.1: Looking at Table 24.1, suppose you buy 10 CSCO January 25 pu...
Looking at Table 24.1, suppose you buy 10 CSCO January 25 put contracts. How much does this cost (ignoring commissions)? Just before the option expires, CSCO is selling for $21.50 per share. Is this good news or bad news? What is your net profit?
TABLE 24.1 | A Sample Wall Street Journal (Online) Option Quotation for Cisco Systems (CSCO) | |||||||||||
January, 2018 | ||||||||||||
Expires January 19, 2018 | ||||||||||||
Calls | Puts | |||||||||||
Last | Chance | Bid | Ask | volume | Open Int. | Strike | Last | Chance | Bid | Ask | Volume | Open Int. |
17.15 | -0.10 | 18.00 | 19.80 | 24 | 29 | 13.00 | 0.07 | -0.02 | 0.06 | 0.07 | 5 | 2480 |
16.10 | +1.10 | 17.20 | 17.40 | 1 | 212 | 15.00 | 0.11 | -0.02 | 0.10 | 0.13 | 10 | 3559 |
13.26 | +1.06 | 13.00 | 14.80 | 10 | 389 | 18.00 | 0.21 | -0.03 | 0.19 | 0.23 | 338 | 7331 |
12.00 | +0.50 | 11.40 | 12.60 | 5 | 937 | 20.00 | 0.31 | -0.01 | 0.30 | 0.32 | 25 | 11970 |
9.25 | +0.25 | 8.70 | 9.50 | 50 | 3253 | 23.00 | 0.52 | 0.48 | 0.52 | 656 | 21567 | |
7.28 | +0.51 | 6.85 | 7.70 | 111 | 6443 | 25.00 | 0.76 | -0.01 | 0.72 | 0.76 | 664 | 19264 |
5.45 | -0.12 | 5.80 | 5.95 | 55 | 6553 | 27.00 | 1.12 | -0.02 | 1.09 | 1.11 | 491 | 41442 |
3.60 | +0.20 | 3.60 | 3.70 | 565 | 19847 | 30.00 | 1.96 | -0.10 | 1.93 | 1.97 | 918 | 21101 |
2.46 | +0.19 | 2.44 | 2.53 | 860 | 25952 | 32.00 | 2.93 | -0.02 | 2.76 | 2.82 | 147 | 3104 |
Last Trade 32.31 as of 02/14/17 4:00 PM ET | ||||||||||||
1.20 | +0.10 | 1.21 | 1.29 | 488 | 42290 | 35.00 | 5.40 | -0.40 | 4.55 | 4.65 | 16 | 1743 |
0.70 | +0.06 | 070 | 0.77 | 176 | 6791 | 37.00 | 7.00 | -0.85 | 6.00 | 6.25 | 10 | 76 |
0.29 | +0.04 | 0.29 | 0.33 | 15 | 6122 | 40.00 | 9.35 | +0.10 | 8.55 | 9.50 | 24 | 38 |
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