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Refer to the stock options on Microsoft in the Figure 2.10 Suppose you buy a November expiration call option on 100 shares with the excise
Refer to the stock options on Microsoft in the Figure 2.10 Suppose you buy a November expiration call option on 100 shares with the excise price of $140. Required: a-1. If the stock price at option expiration is $144, will you exercise your call? O Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) 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 % FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration 27-September-2019 27-September-2019 27-September-2019 15-November-2019 15-November-2019 15-November-2019 Strike 130 135 140 130 135 140 Call 8.65 4.82 1.99 11.50 8.12 5.32 Put 1.03 2.17 4.35 3.55 5.15 7.40 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance
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