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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
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. Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places.) Company Option In/Out of the Money? Premium Exercise? Profit Return Call ABC ABC ABC ABC Put Call Put Strike 10 10 25 25 Today's Stock Price $ 10.26 $ 10.26 $ 23.93 $ 23.93 1.06 0.91 1.01 2.21 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 In/Out of the Money? Exercise? Profit Return ABC Call Put ABC Today's Stock ke Price 10.00 $ 11.23 10.00 $ 11.23 25.00 $ 27.00 25.00 $ 27.00 Premium 1.06 0.91 1.01 2.21 ABC Call ABC Put
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