Question: a. You have just purchased the options listed below. Based on the information given, indicate whether the option would exercise the option if it were

 a. You have just purchased the options listed below. Based on

a. You have just purchased the options listed below. Based on the information given, indicate whether the option would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "0" exercising the option. Round your answer to in the money, out of the money, or at the money, whether you there no profit or return from not decimal places.) Company Strike Today's Stock Price $10.26 In/Out of Option the Money (Click to select) Premium Exercise? Profit Return (Click to select) Call 10 0.98 % $10.26 ABC (Click to select) Put 10 (Click to select) 0,83 % $23.93 Call 25 0.93 (Click to select) (Click to select) % 25 $23.93 Put 2.13 (Click to select) (Click to select) % 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. Today's Stock Price In/Out of the Money? (Click to select) Company Option Strike Profit Premium Exercise? Return $11.23 Call 10 0.98 (Click to select) Put 10 $11.23 0.83 (Click to select) (Click to select) % Call 25 $27.00 0.93 (Click to select) (Click to select) % ABC Put 25 $27.00 2.13 (Click to select) (Click to select) %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!