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Put and Call Options

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QUESTION 1

Focus on the June 445 call. Suppose you bought this call at the price indicated.
How high must AAPL's price rise at expiration to break even on this option?

QUESTION 2

Now, look at the June 445 put. Provide a table showing the profit at expiration to a put buyer across a range of stock prices.

QUESTION 3
Assume you own 100 shares of AAPL stock (at $434.94 per share).

Use the July 435 put to develop a protective put strategy.

How will this strategy protect your position in AAPL if the stock price falls to $390?

What if the price rises to $470?

Calculate the net profit generated by the stock and the put at these prices and assuming they occur at the time of the option's expiration.

QUESTION 4

Create a strtegy by buying the July 445 call and the July 435 put.
What's the maximum loss for this position and what range of stock prices will produce it? Where will you break even? Why would an investor establish a position like this?

See attached for table

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Solution Summary

Answers 4 questions with graphs on an excel file strategies using put and call options.

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