Handout #7
FIN 3033
Fall 2005
Below are the quotes for options on Dell Inc. as of November 7, 2005.
Dell Inc ( DELL ) Underlying stock price*: 29.34
Expiration Strike
Call Put
Last Volume Open Interest Last Volume Open Interest
Nov 25.00 4.30 136 3435 0.05 179 1380
Dec 25.00 4.40 85 216 0.20 3589 71
Feb 25.00 5.00 8 2438 0.50 187 3877
May 25.00 5.40 1 250 0.80 69 1276
Nov 27.50 1.90 458 4587 0.25 800 15277
Dec 27.50 2.45 134 811 0.50 2635 3987
Feb 27.50 3.00 69 417 1.10 186 1076
May 27.50 3.90 30 3375 1.50 93 2056
Nov 30.00 0.55 5064 17583 1.15 1527 23069
Dec 30.00 0.97 3942 13234 1.65 447 7024
Feb 30.00 1.70 654 3840 2.30 355 10076
May 30.00 2.35 207 4570 2.60 292 4145
Nov 32.50 0.10 311 42433 3.30 586 22450
Using the February options with a Strike Price of 30.00, calculate the payoffs and plot the
graphs (like we did in class) for the following positions at market prices of 1) $26.00; 2) $28.00;
3) $30.00; 4) $32.00; and 5) $34.00 per share. Remember that each option is for 100 shares.
A. Buy 100 shares of stock
B. Short 100 shares of stock
C. Buy a call option
D. Sell a call option
E. Buy a put option
F. Sell a put option