Finance - Puts and Calls?

Question

Finance - Puts and Calls?
Does anyone know how to calculate the following question:

If I was to use the same exercise price for each calculation. And the stock price will increase by 5 from 45 to 60

Write CallOption Price 2.875//// 2.875 ///// 2.875 /// 2.875
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share

Buy Put(sell)Option Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share

Write PutOption Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55

Answer 1

I am assuming that the question wants you to find the payoff and then the profit.

The payoff to the buyer of a call option will be the greater of zero or the difference between the stock price and the strike price. The payoff to the seller is just the opposite. So, for a stock price of 60 and a strike price of 55, the payoff is (60-55) which is $5. But the option cost 2.875 -- so the profit is 2.175.

That is the profit for the buyer. The writer of the Call has a loss of that amount. For a strike price of 45, the option expires worthless. Here, the writer pockets the premium of 2.875 and the buyer loses that much.

Puts work the opposite. The payoff of a put is the maximum of zero or (StrikePrice-StockPrice)