versus European optiols) and binations of options. id co In the next chapter we discuss some facts about stock Note: The data for these exercises can be found on the of Finance with Excel, Third Edition companion website (wwwr Benninga). Benninga p in ple 1. (Call option basics) On 11 May 2015 Kel logg stock closed at $63.92 . For $2.69 you can buy a call option on Kellogg with an exercise price of S6f n option expires 18 December 2015. a. What right does this call option give you? Suppose you buy the call option and hold it until the expiration date. If the price of Kellogg on 18 December 2015 is $70, will you exer- cise the option? What will be your profit? b. If the price of Kellogg on 18 December 2015 is $55, will you exer- cise the option? What will be your profit? c