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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
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 In/Out of the Money? Exercise? Net Profit Return Option Call ABC ABC Put Today's Stock Strike Price $ 10.00 $ 10.26 $ 10.00 $ 10.26 $ 25.00 $ 23.93 $ 25.00 $ 23.93 Premium $ 1.06 $ 0.91 $ 1.01 $ XYZ Call XYZ Put 2.21 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.) In/Out of the Money? Exercise? Net Profit Today's Stock Price $ 11.23 Company ABC Return Option Call Strike $ 10.00 Premium $ 1.06 % ABC Put $ 10.00 $ 11.23 $ 0.91 % XYZ Call $ 27.00 $ 1.01 % 25.00 $ 25.00 $ XYZ Put $ 27.00 $ 2.21 %
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