Turn back to Figure 2.10 and look at the Microsoft options. Suppose you buy a November expiration call option with exercise price $140. a. If the stock price at option expiration is $144, will you exercise your call? What is the profit on your position? b. What if you had bought the November call with exercise price $135?

c. What if you had bought the November put with exercise price $140?

Stock options on Microsoft, Septem- ber 4, 2019 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance