PRICES AT CLOSE, July 17, 2012 IBM (IBM) Call Expiration Strike Last Volume Open Interest Jul 180.00 5.50 620 1998 Aug 180.00 6.85 406 2105 Oct 180.00 9.70 184 424 Jan 180.00 12.58 52 2372 Jul 185.00 2.80 2231 3897 Aug 185.00 4.10 656 2656 Oct 185.00 6.99 843 969 Jan 185.00 9.75 135 3156 Underlying stock price: 183.65 Put Last Volume Open Interest 2.11 3080 8123 3.70 847 3621 6.85 245 4984 10.25 76 3196 4.20 2725 7370 6.26 634 3367 9.10 2692 12.01 243 10731 783 Figure 2.10 Stock options on IBM Source: Compiled from data downloaded from The Wall Street Journal Online, July 17, 2012. Refer to Figure 2.10 and look at the IBM options. Suppose you buy a August 2013 expiration call option with exercise price $180. a-1. Suppose the stock price in August is $192. will you exercise your call? Yes No a-2. What is the profit (loss) on your position? (Input the amount as a positive value. Round your answer to 2 decimal places. Omit the "$" sign in your response.) (Click to select) b-1. If you had bought the August call with exercise price $185, will you exercise your call? Yes No b-2. What is the profit (loss) on your position? (Input the amount as a positive value. Round your answer to 2 decimal places. Omit the "$" sign in your response.) b-2. What is the profit (loss) on your position? (Input the amount as a positive value. Round your answer to 2 decimal places. Omit the "$" sign in your response.) ta (Click to select) Profit Loss C-1. I you riau pouyht the August put with exercise price $185, will you exercise your put? Yes c-2. What is the profit (loss) on your position? (Input the amount as a positive value. Round your answer to 2 decimal places. Omit the "$" sign in your response.) (Click to select)