3. Refer to the stock options on Apple in the figure below. Suppose you buy an October expiration call option on 100 shares with the excise price of $100. a. If the stock price in October is $102, will you exercise your call? b. What is the net profit/loss on your position? c. What is the rate of return on your position? 4. Which security should sell at a greater price? a. 10-year Treasury with a 9% coupon rate or 10 -year Treasury with a 10% coupon. b. A three-month expiration call option with an exercise price of $40 or a threemonth call on the same stock with an exercise price of $35. c. A put option on a stock selling at $50 or a put option on another stock selling at $60. (All other relevant features of the stocks and options are assumed to be identical.)