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 0 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 Price Moneyness of the option Premium Exercise Payoff (per Share) Profit (per Share) Return CAB Call 31 $27 42 (Click to select)In the moneyOut of the money 1 85 (Click to select)NoYes CAB Put 31 $27 42 (Click to select)In the moneyOut of the money 5 09 (Click to select)NoYes CAB Call 18 $17 87 (Click to select)In the moneyOut of the money 0 61 (Click to select)YesNo CAB Put 18 $17 87 (Click to select)Out of the moneyIn the money 4 48 (Click to select)NoYes 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 Option Strike Today's Stock Price Moneyness of the option Premium Exercise Payoff (per Share) Profit (per Share) Return CAB Call 23 $26 09 (Click to select)In the moneyOut of the money 4 12 (Click to select)YesNo CAB Put 23 $26 09 (Click to select)Out of the moneyIn the money 1 78 (Click to select)YesNo CAB Call 30 $30 60 (Click to select)Out of the moneyIn the money 5 11 (Click to select)YesNo CAB Put 30 $30 60 (Click to select)Out of the moneyIn the money 1 05 (Click to select)YesNo

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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 0 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 Price	Moneyness of the option?	Premium	Exercise?	Payoff (per Share)	Profit (per Share)	Return
CAB	Call	31	$27.42	(Click to select)In the moneyOut of the money	1.85	(Click to select)NoYes			%
CAB	Put	31	$27.42	(Click to select)In the moneyOut of the money	5.09	(Click to select)NoYes			%
CAB	Call	18	$17.87	(Click to select)In the moneyOut of the money	0.61	(Click to select)YesNo			%
CAB	Put	18	$17.87	(Click to select)Out of the moneyIn the money	4.48	(Click to select)NoYes			%

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	Option	Strike	Today's Stock Price	Moneyness of the option?	Premium	Exercise?	Payoff (per Share)	Profit (per Share)	Return
CAB	Call	23	$26.09	(Click to select)In the moneyOut of the money	4.12	(Click to select)YesNo			%
CAB	Put	23	$26.09	(Click to select)Out of the moneyIn the money	1.78	(Click to select)YesNo			%
CAB	Call	30	$30.60	(Click to select)Out of the moneyIn the money	5.11	(Click to select)YesNo			%
CAB	Put	30	$30.60	(Click to select)Out of the moneyIn the money	1.05	(Click to select)YesNo

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