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 $104.75. Will you exercise your call?

multiple choice 1

Yes

No

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? multiple choice 2

Yes

No

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? multiple choice 3

Yes

No

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