Refer to the stock options on Apple in the figure 2.10. Suppose you buy an May expiration call option on 100 shares with the excise price of $135. a-1. If the stock price in May is $150, will you exercise your call? Yes NO 3-2. What is the net profit loss on your position (input the amount as a positive value.) 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.) b-1. Would you exercise the call if you had bought the May call with the exercise price $145? Yes No D-2. What is the net profit loss on your position? (Input the amount as a positive value.) 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.) FIGURE 2.10 Strike 135 Option prices on Apple (AAPL), April 18, 2017 Expiration May 12, 2017 May 12, 2017 May 12, 2017 June 16, 2017 June 16, 2017 June 16, 2017 / 140 145 135 140 145 Call Put 7.63 1.17 3.80 2.71 1.615.60 8.05 2.07 4.80 3.90 .50 6.65 Note: Apple stock price on April 18, 2017 was $141.20. Source: Compiled from data downloaded from Nasdaq, www.nasdaq.com. 2 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.) c.1. What if you had bought an May put with exercise price $135 instead? Would you exercise the put at a stock price of $1352 Yes No c-2. What is the rate of return on your position (Negative value should be indicated by a minus sign.)