Refer to the stock options on Apple in the Figure 2.9. Suppose you buy a January expiration call option with exercise price $360.

a-1.

If the stock price in January is $380, will you exercise your call?

	Yes
	No

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

(Click to select)Net profitNet loss

$

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

%

b-1.

Would you exercise the call if you had bought the January call with the exercise price $355?

	Yes
	No

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

(Click to select)Net profitNet loss

$

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 return

%

c-1.

What if you had bought a January put with an exercise price of $360 instead? Would you exercise the put at a stock price of $360?

	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

$ %