FIGURE 2.10 Expiration Put Strike Call Option prices on Apple (AAPL), April 18, 2017 | May 12, 2017 May 12, 2017 135 7.63 1.17 3.80 2.71 140 145 5.60 May 12, 2017 1.61 Note: Apple stock price on April 18, 2017 was $141.20 June 16, 2017 135 8.05 2.07 Source: Compiled from data downloaded from Nasdaq, June 16, 2017 140 4.80 3.90 www.nasdaq.com June 16, 2017 2.50 145 6.65 Refer to the stock options on Apple in the Figure 210. Suppose you buy an May expiration call option on 100 shares with the excise price of $145. a-1. If the stock price in May is $153, will you exercise your call? OYes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of Net profit Net loss 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 b-1. Would you exercise the call if you had bought the May call with the exercise price $145? Yes No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of Net profit Net loss 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 % c-1. What if you had bought an May put with exercise price $145 instead? Would you exercise the put at a stock price of $145? Yes ONo c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return