Question
Options information on Apple stock is given in the following table. Suppose you buy a March-18th expiration call option with an exercise price of
Options information on Apple stock is given in the following table. Suppose you buy a March-18th expiration call option with an exercise price of $165. If the stock price on March-18th goes up to $175. Apple (AAPL) Expiration 18-Feb. 18-Mar 18-Feb 18-Mar 18-Feb 18-Mar Strike 155 155 165 165 170 170 Underlying stock price = $162.41 Put 3.75 5.72 7.88 9.78 10.88 12.72 A. Will you exercise your call? Call 11.22 12.97 5.17 7.28 3.1 5.13 Yes B. What is the gross profit? [Select] C. What is the premium cost? [ [Select] D. What is the rate of return on your position? 37.36% > < >
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