B-1 AND B-2 PLEASE

Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an May expiration call option on 100 shares with the excise price of $140. a-1. If the stock price in May is $152, will you exercise your call? Yes NO a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of $ 820 a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return 215.79% b-1. Would you exercise the call if you had bought the May call with the exercise price $145? Yes ONO b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of C b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return FIGURE 2.10 Strike Call Put 135 Option prices on Apple (AAPL), April 18, 2017 Expiration May 12, 2017 May 12, 2017 May 12, 2017 June 16, 2017 June 16, 2017 June 16, 2017 140 145 135 140 145 7.63 3.80 1.61 8.05 4.80 2.50 1.17 2.71 5.60 2.07 3.90 6.65 Note: Apple stock price on April 18, 2017 was $141.20. Source: Compiled from data downloaded from Nasdaq www.nasdaq.com