Stock options on Microsoft, September $4,2019$

Expiration Strike Call Put

$27-$September$-20191308\mathrm{.}651\mathrm{.}03$

$27-$September$-20191354\mathrm{.}822\mathrm{.}17$

$27-$September$-2019140,1\mathrm{.}99,4\mathrm{.}35$

$15-$November$-201913011\mathrm{.}503\mathrm{.}55$

$15-$November$-20191358\mathrm{.}12,5\mathrm{.}15$

$15-$November$-2019140,5\mathrm{.}32,7\mathrm{.}40$

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

Item$9$

$9\mathrm{.}09$

points

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 $$143,$ 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 $$130?$

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 positiom? $($Negative value should be indicated by a minus sign$)$