Turn to Figure 2 8 and find the options for Canadian
Turn to Figure 2.8 and find the options for Canadian Natural Resources. Suppose you buy a June call option with exercise price $ 24, and the stock price in June is $ 28.
a. Will you exercise your call? What are the profit and rate of return on your position?
b. What, if you had bought the call with exercise price $ 25 and the stock price turns out to be $ 24, would be your revised answers?
c. Suppose you had bought a June put with exercise price $ 24. What would be your answers, if the share price in June is $ 22?
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