Part B: Options

Problem $3$: Option Payoffs

a$.$ You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, or out of 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 $($assume your initial investment is the option premium for each case$).($Enter $"0"$ if there is no profit or return from not exercising the option. Round your answers to $2$ decimal places. Loss amounts should be indicated by a minus sign. Please write the formulas by which you obtain the net profit.$)$

$\backslash$table$[[$Company Option Strike,$\{$

$\backslash$table$[[$Today$\text{'}$s In$/$Out$],[$Stock of$],[$Price Money?$]]\},\backslash$table$[[$Premium Exercise? Net$],[$Return$],[$Profit$]]],[],[ABC,$Call,$$10\mathrm{.}00,$$$10\mathrm{.}26,,$$$1\mathrm{.}10],[$ABC$,$Put,$$10\mathrm{.}00,$$$10\mathrm{.}26,,$$$0\mathrm{.}95$