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 $140.

FIGURE 2.10 Strike Call Put 7.63 135 140 1.17 2.71 Option prices on Apple (AAPL), April 18, 2017 3.80 Expiration May 12, 2017 May 12, 2017 May 12, 2017 June 16, 2017 June 16, 2017 June 16, 2017 145 5.60 1.61 8.05 135 2.07 4.80 3.90 140 145 Note: Apple stock price on April 18, 2017 was $141.20. Source: Compiled from data downloaded from Nasdaq, www.nasdaq.com 2.50 6.65 C-1. What if you had bought an May put with exercise price $140 instead? Would you exercise the put at a stock price of $140? Yes c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return %