Refer to the stock options on Microsoft in the Figure $2\mathrm{.}10.$ Suppose you buy a November expiration call option on $200$ shares with the excise price of $$140.$

Required: FIGURE $2\mathrm{.}10$ Stock options on Microsoft, September $4,2019$

Note: Microsoft stock price on this day was $$137\mathrm{.}49.$

Source: Compiled from data downloaded from Yahoo! Finance. b$-1.$ Would you exercise the call if you had bought the November call with the exercise price $$135?$

Yes

No

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

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.$)$ Refer to the stock options on Microsoft in the Figure $2\mathrm{.}10.$ Suppose you buy a

November expiration call option on $200$ shares with the excise price of $$140.$

Required:

a$-1.$ If the stock price at option expiration is $$144,$ 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.$)$ Refer to the stock options on Microsoft in the Figure $2\mathrm{.}10.$ Suppose you buy a

November expiration call option on $200$ shares with the excise price of $$140.$

Required:

a$-1.$ If the stock price at option expiration is $$144,$ 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.$)$ 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.$)$

b$-1.$ Would you exercise the call if you had bought the November call with the

exercise price $$135?$

Yes

No

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

positive value.$)$

Net profit

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

vdots$\%$

c$-1.$ What if you had bought the November put with exercise price $$140$

instead? Would you exercise the put at a stock price of $$140?$

Yes

No

c$-2.$ What is the rate of return on your position? $($Negative value should be

indicated by a minus sign.$)$

a$-1.$ If the stock price at option expiration is $$144,$ will you exercise your call?

multiple choice $1$

Yes

No

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

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.$)$

b$-1.$ Would you exercise the call if you had bought the November call with the exercise price $$135?$

multiple choice $2$

Yes

No

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

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.$)$

c$-1.$ What if you had bought the November put with exercise price $$140$ instead? Would you exercise the put at a stock price of $$140?$

multiple choice $3$

Yes

No

c$-2.$ What is the rate of return on your position? $($Negative value should be indicated by a minus sign.$)$