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FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration Strike Call Put 27-September-2019 130 8.65 1.03 27-September-2019 135 4.82 2.17 27-September-2019 140 1.99 4.35

FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration Strike Call Put 27-September-2019 130 8.65 1.03 27-September-2019 135 4.82 2.17 27-September-2019 140 1.99 4.35 15-November-2019 130 11.50. 3.55 15-November-2019 135 8.12 5.15 15-November-2019 140 5.32 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 $1357 Yes O No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit Answer is not complete. 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 % e-t. What if you had bought the November put with exercise price $140 instead? Would you exercise the put at a stock price of $140 Yes No O c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign) Answer is complete but not entirely correct. Rate of tum (5) O

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