2. The following table provides CALL and PUT options for Apple Inc. (AAPL) stock, which ended trading at $121.03 (-0.76%) on March 12, 2021 at 4:00 PM EST (at close). According to the listing, the options are going to expire on April 16, 2021, i.e., it expires in 35 days. One option contract is equivalent to 100 shares.
CALL Option:
Price Strike Last Price Change %Change Volume Open Interest Implied Volatility
35.25 36.2 36.35 -1.85 -4.99% 1 62.70% 90
31.25 31.25 31.4 -1.03 -3.19% 10 1,944 55.76%
26.15 26.35 26.55 0.25 0.97% 1 601 50.73%
21.4 21.55 21.7 -1.1 -4.9% 79 4,566 46.95%
5.59 5.55 5.7 -0.61 9.84% 14,763 79,844 35.24%
3.35 3.35 3.4 -0.44 -11.61% 6,240 72,491 34.35%
0.28 0.28 0.29 -0.03 -9.65% 1,274 48,878 40.82%
PUT Option:
Strike Last Price Ask Change %Change Volume Open Interest Implied Volatility
85 0.16 0.18 0 32 2,732 55.95%
90 0.24 0.23 -0.02 -7.69% 16 5,063 53.71%
95 0.37 0.31 0.36 0.93 6,651 49.12%
100 0.52 0.52 -0.01 1.92% 423 13,718 44.49%
110 1.5 1.47 1.5 0.11 1,753 19,349 37.60%
120 4.55 4.5 4.55 0.4 17,619 9,396 34.42%
125 7.28 7.2 7.3 0.53 580 56,787 33.66%
130 10.95 10.7 10.85 0.78 719 31,335
140 19.97 19.45 19.6 1.45 5,095 60,006
150 29.25 29.1 29.25 1.09 364 4,639 40.58
c. Suppose that you had purchased the $150 PUT option at $29.25 per share on March 12, 2021, after you had purchased 100 shares of Apple Inc. one month earlier for $120 per share.
Why would you purchase this PUT? What happens if Apple Inc.'s share is trading at $150 per share on April 16 and has fallen below $150? Why would you be happy with what you had done?
u. "hi.
On the same diagram, draw a graph to show the pattern of profits per share from the long stock position, the long PUT option, and the net position protective put.
