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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

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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. Refer to Table 2.6 and look at the Microsoft options. Suppose you buy a February expiration call option with exercise price $100. a-1. Suppose the stock price in February is $104.90. 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 c-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.)

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