Question
Problem 2-26 Refer to the stock options on Apple in the Figure 2.9. Suppose you buy a July expiration call option with exercise price $350.
Problem 2-26
Refer to the stock options on Apple in the Figure 2.9. Suppose you buy a July expiration call option with exercise price $350. |
a-1. | If the stock price in July is $358, will you exercise your call? | ||||
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a-2. | What is the net profit/loss on your position? (Input the amount as a positive value.) |
(Click to select)Net lossNet profit | $ |
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 | % |
b-1. | Would you exercise the call if you had bought the July call with the exercise price $355? | ||||
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b-2. | What is the net profit/loss on your position? (Input the amount as a positive value.) |
(Click to select)Net profitNet loss | $ |
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 | % |
c-1. | What if you had bought a July put with an exercise price of $350 instead? Would you exercise the put at a stock price of $350? | ||||
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c-2. | 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 | $ % |
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