Question
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
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. (Remember to include the premium in the profit and return calculations of the option. Round your answer to 2 decimal places.)
Company | Option | Strike | Today's Stock Price | In/Out of the Money? | Premium | Exercise? | Profit | Return |
TSLA | Call | 10 | $10.26 | (Click to select) In the money Out of the money | 1.10 | (Click to select) Yes No | % | |
TSLA | Put | 10 | $10.26 | (Click to select) In the money Out of the money | 0.95 | (Click to select) Yes No | % | |
TSLA | Call | 25 | $23.93 | (Click to select) In the money Out of the money | 1.05 | (Click to select) Yes No | % | |
TSLA | Put | 25 | $23.93 | (Click to select) In the money Out of the money | 2.25 | (Click to select) Yes No | % | |
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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 | Today's Stock Price | In/Out of the Money? | Premium | Exercise? | Profit | Return |
TSLA | Call | 10 | $11.23 | (Click to select) In the money Out of the money | 1.10 | (Click to select) Yes No | % | |
TSLA | Put | 10 | $11.23 | (Click to select) In the money Out of the money | 0.95 | (Click to select) Yes No | % | |
TSLA | Call | 25 | $27.00 | (Click to select) In the money Out of the money | 1.05 | (Click to select) Yes No | % | |
TSLA | Put | 25 | $27.00 | (Click to select) In the money Out of the money | 2.25 | (Click to select) Yes No | % | |
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