Question: @ 14% Indo Assignment_2 BAF307 Inv. Spring 2019-... = tion (1): Answer the following questions: (4 Marks) - The following table for the IBM options.

@ 14% Indo Assignment_2 BAF307 Inv. Spring 2019-... = tion (1): Answer the following questions: (4 Marks) - The following table for the IBM options. Suppose you buy a June 2016 expiration call option with exercise price $150. Prices of Stock options on IBM, May 10, 2016 Expiration Strike/Exercise Put (X) June 145 6.6 1.57 June 3.31 3.3 June 155 1.27 call 150 6.53 a. Suppose the stock price (ST) in June is $ 152. Will you exercise your call? What is the profit/loss on your position? (2 marks) b. What if you had bought the June call with exercise price $145? (2 marks)

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