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FIGURE 2.10 Stock options on Microsoft, September 4, 201 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahool

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FIGURE 2.10 Stock options on Microsoft, September 4, 201 Note: Microsoft stock price on this day was \$137.49. Source: Compiled from data downloaded from Yahool Finance. Refer to the stock options on Macrosoft in the Suppose you buy a September expiration call option on 100 shares with the excise price of $140 Required: o-1. If the stock price at option expiration is \$141, will you exercise your call? Yes No 6.2. What is the net profitloss on your posation? (Input the amount as a posltive value.) 0.3. What is the rate of retuin on your postion? (Negetive value should be indicated by o minus sign. Round your answer to 2 decimai pieces) b-1. Would you exercise the call if you had bought the September call with the exercise price $135 ? Yes No b-2. What is the net profitlioss on your position? (Input the amount os a positive value.) b.3. What is the rote of retuin on your position? (Negative velue should be indicated by a minus slgin. Round your answer to 2 decimol pleces.) c-1. Whot if you had bought the September put wih exercise price $140 instead? Vould you exercise the put at a stock price of \$140? Yes No c-2. What is the rote of retum on your position? (Negotlve value should be Indicated by a minus slgn.)

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