Investments, tenth edition

Underlying stock price: 183.65

PRICES AT CLOSE, July 17, 2012

Put

Call

12.58

52

IBM (IBM)

 Figure 2.10 

Stock options on IBM  

Source: Compiled from data downloaded from  The Wall Street Journal Online,  July 17, 2012.    

 What would be the profit or loss per share to an investor who bought the July 2012 

expiration IBM call option with exercise price $180 if the stock price at the expira-

tion date is $187? What about a purchaser of the put option with the same exercise 

price and expiration? 

 CONCEPT CHECK 

2.6 

bod61671_ch02_028-058.indd   52

bod61671_ch02_028-058.indd   52

6/18/13   7:41 PM

6/18/13   7:41 PM

Final PDF to printer

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2

  Asset Classes and Financial Instruments 

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