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Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an June expiration call option on 100 shares with the excise
Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an June expiration call option on 100 shares with the excise price of $145. a-1. If the stock price in June is $148, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of $ (463) 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.) Rate of return % ok ences 6-1. Would you exercise the call if you had bought the June call with the exercise price $140? Yes NO b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of ces 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.) Rate of retum % C-1. What if you had bought an June put with exercise price $145 instead? Would you exercise the put at a stock price of $145? O Yes O NO c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return %
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