Question: a. You have just purchased the options listed below. Based on the information given indicate whether the option is in the money, out of the
a. You have just purchased the options listed below. Based on the information given indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "o" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Company Option Strike Today's Stock In/Out of the Price Money? Premium Exercise? Profit Return ABC Call 10 $10.26 In the money 0.90 Yes ABC Put 10 $10.26 Out of the money 0.75 No -0.95 ABC 25 523.93 Out of the money 0.85 -105 ABC 25 $23.93 In the money 2.05 Yes 0.84 Call Put No -118 b. Now suppose that time has passed and the stocks prices have changed as indicated in the table below. Recalculate your answers to part a Company ABC Option Call Strike 10 10 Profit Return Today's Stock Price $11.23 $11.23 527.ee $27.00 ABC ABC ABC In/out of the Honey? Click to select) Click to select) (Cick to select) (Click to select v Premium e. 0.75 0.85 2.05 Exercise Click to select) Click to select) (Click to select) (Click to select) Call Put 25
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