Refer to the stock options on Microsoft in the Figure $2\mathrm{.}10.$ 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?

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 Indleated 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 profn $||>$ of

Prev

$13$ of $16$

Next

b$-3.$ What is the rate of return on your position? $($Negatlve value should be indlcated by a minus slgn$.$ Round your answer to $2$ decimal places.$)$

Rate of retum

$\%$

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.$)$

Rate of return

$(100)\%\%$

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

$\backslash$table$[[$Expiration$,$Strike,Call,Put$],[27-$September$-2019,130,8\mathrm{.}65,1\mathrm{.}03],[27-$September$-2019,135,4\mathrm{.}82,2\mathrm{.}17],[27-$September$-2019,140,1\mathrm{.}99,4\mathrm{.}35],[15-$November$-2019,130,11\mathrm{.}50,3\mathrm{.}55],[15-$November$-2019,135,8\mathrm{.}12,5\mathrm{.}15],[15-$November$-2019,140,5\mathrm{.}32,7\mathrm{.}40]]$

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