Consider the common stock of ABC company. The current price of stock is Rs 170 per share. Call and put option are available on this stock. Call option on ABC stock with Rs 170 exercise price and…

Consider the common stock of ABC company. The current price of stock is Rs 170 per share. Call and put option are available on this stock. Call option on ABC stock with Rs 170 exercise price and three months to expiration are currently selling at Rs 20 and put options on this stock with Rs 170 exercise price and three months to expiration are selling for Rs 10. Possible stock prices at the expiration dates are Rs 140, Rs 150, Rs 160, Rs 170, Rs 180, Rs 190, and Rs 200. a. Buy one call contract and hold it until the options expire. Determine the gains or losses, breakeven price, maximum gain and loss of this transaction. b. Buy one put contract and hold it until the options expire. Determine the gains or losses, breakeven stock price, maximum gain and loss on this transaction. c. Buy 100 shares of stock and write one call contract and hold the position until expiration. Determine gain or loss, breakeven stock price, the maximum profit, and the maximum loss.