Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an October expiration call option with exercise price $105.

APPLE [Underlying Stock Price = $101.05]

Expiration Strike Call Put

September 95 6.20 0.21

October 95 6.35 0.33

September 100 2.20 1.18

October 100 2.62 1.55

September 105 0.36 4.35

October 105 0.66 4.75

a-1. If the stock price in October is $106, will you exercise your call?

	Yes
	No

a-2. What is the net profit/loss on your position? (Negative amount should be indicated by a minus sign.)

(Click to select)Net lossNet 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?

	Yes
	No

b-2. What is the net profit/loss on your position? (Input the amount as a positive value.)

(Click to select)Net lossNet 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 $105 instead? Would you exercise the put at a stock price of $105?

	Yes
	No

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 %