Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Am. 12.

Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100
shares with the excise price of $140
FIGURE 2.10 Stock options on Microsoft, September 4, 2019
Expiration StrikeCall Put27-September-20191308.651.0327-September-20191354.822.1727-September-20191401.994.3515-
November-201913011.503.5515-November-20191358.125.1515-November-20191405.327.40
b-1. Would you exercise the call if you had bought the November call with the exercise price $135?
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.)
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Transcribed Image Text:Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $140 FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration StrikeCall Put27-September-20191308.651.0327-September-20191354.822.1727-September-20191401.994.3515- November-201913011.503.5515-November-20191358.125.1515-November-20191405.327.40 b-1. Would you exercise the call if you had bought the November call with the exercise price $135? 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.)
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