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. 05 Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $140. Required: a-1. If the stock price at option expiration is $144, 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 loss of $ 400 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 4.00 % b-1. Would you exercise the call if you had bought the November call with the exercise price $135? O Yes No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of $ 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 (5.00) % c-1. 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 O NO c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return %