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Refer to the stock options on Apple in the Figure 2.10, Suppose you buy an October expiration call option with exercise price $100 a-1. If
Refer to the stock options on Apple in the Figure 2.10, Suppose you buy an October expiration call option with exercise price $100 a-1. If the stock price in October is $105, will you exercise your call? O Yes O No a-2. What is the net profit/loss on your position? (Negative amount should be indicated by a minus sign.) Net profit a-3. What is the rate of return on your position (Round your answer to 2 decimal places.) Rate of return b-1. Would you exercise the call if you had bought the October call with the exercise price $95? O No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit b-3. What is the rate of return on your position? (Round your answer to 2 decimal places.) Rate of return c-1. What if you had bought an October put with an exercise price of $100 instead? Would you exercise the put at a stock price of $100? O Yes 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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