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excercise price $140 b-1. Would you exercise the call if you had bought the November call with the exercise price $135? Yes No b-2. What
excercise price $140
b-1. Would you exercise the call if you had bought the November call with the exercise price $135? Yes No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit or is 500 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 0.62% FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration 27-September-2019 27-September-2019 27-September-2019 15-November-2019 15-November-2019 15-November-2019 Strike 130 135 140 130 135 140 Call 8.65 4.82 1.99 11.50 8.12 5.32 Put 1.03 2.17 4.35 3.55 5.15 7.40 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance. b-1. Would you exercise the call if you had bought the November call with the exercise price $135? Yes No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit or is 500 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 0.62% FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration 27-September-2019 27-September-2019 27-September-2019 15-November-2019 15-November-2019 15-November-2019 Strike 130 135 140 130 135 140 Call 8.65 4.82 1.99 11.50 8.12 5.32 Put 1.03 2.17 4.35 3.55 5.15 7.40 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance Step by Step Solution
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