Refer to Table 2.6 and look at the Microsoft options. Suppose you buy a February expiration call option with exercise price $100. a-1. Suppose the stock price in February is $104.80. Will you exercise your call?

a-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)

b-1. If you had bought the February call with exercise price $95, will you exercise your call?

b-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)

c-1. If you had bought the February put with exercise price $105, will you exercise your put?

c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)

Expiration Strike Call 18-Jan-2019 95 7.65 18-Jan-2019 100 3.81 18-Jan-2019 105 1.45 8-Feb-2019 95 9.50 8-Feb-2019 100 5.60 8-Feb-2019 105 3.08 Note: Microsoft stock on this day was $101.51. Source: Compiled from data downloaded from Yahoo! Finance. Put 0.98 2.20 4.79 2.86 3.92 6.35 Table 2.6 Prices of stock options on Microsoft, January 2, 2019 O Yes O No O Yes O No O Yes O No