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a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the

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a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Company Option Today's Stock In/Out of the Strike Price Money? Premium Exercise? Profit Return In the ABC Call 10 $10.26 money 1.02 Yes Out of the money ABC Put 10 $10.26 0.87 NO > ABC Call 25 $23.93 Out of the money 0.97 NO ABC Put 25 $23.93 In the money 2.17 Yes b. Now suppose that time has passed and the stocks' prices have changed as indicated in the table below. Recalculate your answers to part a. Company Option Strike Premium Exercise? Profit Return Today's Stock In/Out of the Price Money? In the $11.23 money ABC Call 10 1.02 Yes Out of the money ABC Put 10 $11.23 0.87 No 0 ABC Call 25 $27.00 In the money 0.97 Yes ABC Out of the money Put 25 $27.00 2.17 No 0 a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Company Option Today's Stock In/Out of the Strike Price Money? Premium Exercise? Profit Return In the ABC Call 10 $10.26 money 1.02 Yes Out of the money ABC Put 10 $10.26 0.87 NO > ABC Call 25 $23.93 Out of the money 0.97 NO ABC Put 25 $23.93 In the money 2.17 Yes b. Now suppose that time has passed and the stocks' prices have changed as indicated in the table below. Recalculate your answers to part a. Company Option Strike Premium Exercise? Profit Return Today's Stock In/Out of the Price Money? In the $11.23 money ABC Call 10 1.02 Yes Out of the money ABC Put 10 $11.23 0.87 No 0 ABC Call 25 $27.00 In the money 0.97 Yes ABC Out of the money Put 25 $27.00 2.17 No 0

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