Turn back to Figure 2 10 and look at the Microsoft options Suppose you buy a November expiration call option with exercise price $140 Figure 2 10 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 ...

Turn back to Figure 2.10 and look at the Microsoft options. Suppose you buy a November expiration

Question:

Turn back to Figure 2.10 and look at the Microsoft options. Suppose you buy a November expiration call option with exercise price $140.

Figure 2.10

Expiration 27-Sep- 2019 27-Sep- 2019 27-Sep- 2019 15-Nov- 2019 15-Nov- 2019 15-Nov- 2019 Strike 130 135 140

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?

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ISE Essentials Of Investments

ISBN: 9781265450090

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Nov 18, 2023 11:34 PM

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Turn back to Figure 2.10 and look at the Microsoft options. Suppose you buy a November expiration

Question:

Expiration 27-Sep- 2019 27-Sep- 2019 27-Sep- 2019 15-Nov- 2019 15-Nov- 2019 15-Nov- 2019 Strike 130 135 140 130 135 140 Call 8.65 4.82 1.99 11.50 8.12 5.32 Put 1.03 2.17 4.35 3.55 5.15 7.40

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ISE Essentials Of Investments

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