Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You sold one contract of the $115 strike call. What is your max profit? State your answer in total dollar terms (i.e., total out-of-pocket cost not factoring transaction costs), not contract-level terms. Your answer should be a dollar amount with two decimal places of accuracy. (Note on viewing table below: You may have to use a horizontal scrollbar to see all of the columns in the table below.) CAT Option Chain Month: Nov 2020 Calls Last Change Bid Ask Volume 12.40 11.75 14.80 15.45 12.05 12.65 -- 10.05 +0.74 9.75 10.10 10 7.70 +1.70 7.70 8.10 2 Open Int. 32 Puts Strike Last Change 100.00 10.70 -0.27 10.55 10.90 12 154 105.00 13.00 -0.65 211 110.00 15.54 Bid Ask Volume 622 115.00 18.64 12.85 13.25 15.50 15.95 18.40 18.95 28 Open Int. 426 403 308 292

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You sold one contract
of the $115 strike call. What is your max profit? State your answer in total dollar terms (i.e., total
out-of-pocket cost not factoring transaction costs), not contract-level terms. Your answer should
be a dollar amount with two decimal places of accuracy.
(Note on viewing table below: You may have to use a horizontal scrollbar to see all of the columns
in the table below.)
CAT Option Chain
Month: Nov 2020
Calls
Last Change Bid Ask Volume
12.40
11.75
10.05 +0.74
14.80 15.45
12.05 12.65
9.75 10.10
Open
Int.
7.70 +1.70 7.70 8.10 2
Strike
Puts
Last Change Bid Ask Volume
32 100.00 10.70 -0.27 10.55 10.90 12
154 105.00 13.00 -0.65 12.85 13.25 28
10 211 110.00 15.54
622 115.00 18.64
15.50 15.95
18.40 18.95
Open
Int.
426
403
308
292
Transcribed Image Text:Reference the options chain for Caterpillar, Inc. (ticker: CAT) shown below. You sold one contract of the $115 strike call. What is your max profit? State your answer in total dollar terms (i.e., total out-of-pocket cost not factoring transaction costs), not contract-level terms. Your answer should be a dollar amount with two decimal places of accuracy. (Note on viewing table below: You may have to use a horizontal scrollbar to see all of the columns in the table below.) CAT Option Chain Month: Nov 2020 Calls Last Change Bid Ask Volume 12.40 11.75 10.05 +0.74 14.80 15.45 12.05 12.65 9.75 10.10 Open Int. 7.70 +1.70 7.70 8.10 2 Strike Puts Last Change Bid Ask Volume 32 100.00 10.70 -0.27 10.55 10.90 12 154 105.00 13.00 -0.65 12.85 13.25 28 10 211 110.00 15.54 622 115.00 18.64 15.50 15.95 18.40 18.95 Open Int. 426 403 308 292
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