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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.) Option Profit Return Company ABC ABC Call In/Out of the Strike Today's Stock Price Money? 10 $ 10.26 in the money 10 $ 10.26 Out of the money 25 $ 23.93 Out of the money 25 $ 23.93 in the money Put Call Put Premium Exercise? 1.10 Yes 0.95 No 1.05 No 2.25 Yes % % % % ABC ABC 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 Profit Return % ABC ABC Option Call Put Call Put Strike Today's Stock In/Out of the Price Money? 10.00 $ 11.23 in the money 10.00 $ 11.23 Out of the money 25.00 $ 27.00 in the money 25.00 $ 27.00 Out of the money Premium Exercise? 1.10 Yes 0.95 No 1.05 Yes 2.25: No ABC ABC % %
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