Required:

a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, or out of the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter 0 if there is no profit or return from not exercising the option. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.)

b. Now suppose that time has passed and the stocks prices have changed as indicated in the table below. Recalculate your answers to part a. (Enter 0 if there is no profit or return from not exercising the option. Round your answers to 2 decimal places.)

b. Now suppose that time has passed and the stocks' prices have changed as indicated in the table below. Recalculate your answers to part a. (Enter "O" if there is no profit or return from not exercising the option. Round your answers to 2 decimal places.) Option Call Company ABC ABC XYZ XYZ Put Today's Stock Strike Price In/Out of the Money? $ 10.00 $ 11.23 in the money $ 10.00 $ 11.23 Out of the money $ 25.00 $ 27.00 in the money $ 25.00 $ 27.00 Out of the money Premium Exercise? $ 1.10 Yes $ 0.95 No $ 1.05 Yes $ 2.25 No Net Profit $ 0.25 $ (0.83) $ 1.07 $ (2.13) Return 25.51% (100.00 % 115.05% (100.00) Call Put Required: a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, or out of the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Company ABC ABC Option Call Put $ Today's Stock Strike Price In/Out of the Money? $ 10.00 $ 10.26 in the money $ 10.00 $ 10.26 Out of the money $ 25.00 $ 23.93 Out of the money $ 25.00 $ 23.93 in the money Premium Exercise? $ 1.10 Yes $ 0.95 No $ 1.05 NO 2.25 Yes Net Profit $ (0.72) $ (0.83) $ (0.93) (1.06) Return (73.47) % (100.00) % (100.00) % (49.77) % XYZ AAA Call Put XYZ b. Now suppose that time has passed and the stocks' prices have changed as indicated in the table below. Recalculate your answers to part a. (Enter "O" if there is no profit or return from not exercising the option. Round your answers to 2 decimal places.) Company ABC Option Call Put Today's Stock Strike Price In/Out of the Money? $ 10.00 $ 11.23 in the money $ 10.00 $ 11.23 Out of the money Premium Exercise? $ 1.10 Yes $ 0.95 No Net Profit $ 0.25 $ (0.83) Return 25.51% (100.00) % ABC