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Refer to the stock options on Microsoft in the Figure 2 . 1 0 . Suppose you buy a November expiration call option on 2

Refer to the stock options on Microsoft in the Figure 2.10. 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 $145, will you exercise your call?
multiple choice 1
Yes Correct
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 $130?
multiple choice 2
Yes Correct
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 Correct
c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.)

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