Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an October expiration call option on 100 shares with the exercise price of $100.

a-1. If the stock price in October is $102, 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 of $

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 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 profitNet loss of $

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 an October put with exercise price $100 instead? Would you exercise the put at a stock price of $100?

	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 %

Underlying stock price = $101.05 Call Put 6.20 0.21 Strike 95 95 100 100 FIGURE 2.10 Option trading in Apple (AAPL), September 17, 2014 Source: www.cboe.com September 17, 2014 Apple (AAPL) Expiration September October September October September October 6.35 0.33 1.18 2.20 2.62 1.55 0.36 4.35 105 105 0.66 4.75