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 Profit Return ABC Option Call Put Call Put Strike 10 10 Today's Stock Price $10.26 $10.26 $23.93 $23.93 In/Out of the Money? In the money Out of the money Out of the money In the money ABC Premium 0.86 0.71 0.81 2.01 Exercise? Yes No No Yes de e de de ABC 25 ABC 25 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 Strike Profit Return Premium 0.86 ABC 10 Option Call Put Call Put Today's Stock Price $11.23 $11.23 $27.00 $27.00 ABC 10 In/Out of the Money? (Click to select) (Click to select) (Click to select) (Click to select) 0.71 Exercise? (Click to select) (Click to select) (Click to select) (Click to select) de se debe ABC 25 0.81 2.01 ABC 25
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