Suppose you buy a February call option with exercise price $100.

Table 2.6 Prices of stock options on Microsoft, January 2, 2019 Note: Microsoft stock on this day was $101.51. Source: Compiled from data downloaded from Yahool Finance. a-1. Suppose the stock price in February is $104.75. Will you exercise your call? Yes No a-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.) b-1. If you had bought the February call with exercise price $95, will you exercise your call? Yes No b-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.) c-1. If you had bought the February put with exercise price $105, will you exercise your put? Yes No