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26. Turn back to Figure 2.10 and look at the Apple options. Suppose you buy an October expiration call option with exercise price $100. a.

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26. Turn back to Figure 2.10 and look at the Apple options. Suppose you buy an October expiration call option with exercise price $100. a. If the stock price in October is $102, will you exercise your call? What are the profit and rate of return on your position? b. What if you had bought the October call with exercise price $95? c. What if you had bought an October put with exercise price $100? FIGURE 2.10 Option trading in Apple (AAPL), September 17, 2014 Source: www.cboc.com, September 17,20[4

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