Question: Please help me with a-2/a-3/b-2/b-3/c-2/c-3 It's better if you have detailed steps. Refer to the stock options on Apple in the Eigure 2.10. Suppose you

Please help me with a-2/a-3/b-2/b-3/c-2/c-3
It's better if you have detailed steps.
 Please help me with a-2/a-3/b-2/b-3/c-2/c-3 It's better if you have detailed
steps. Refer to the stock options on Apple in the Eigure 2.10.
Suppose you buy an June expiration call option on 30 shares with
the excise price of $145 6-1. If the stock price in June

Refer to the stock options on Apple in the Eigure 2.10. Suppose you buy an June expiration call option on 30 shares with the excise price of $145 6-1. If the stock price in June is $149, will you exercise your call? Yes ONo 0-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of D a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % b-1. Would you exercise the call if you had bought the June call with the exercise price $140? Yes O No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) 1-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % C-1. What If you had bought an June put with exercise price $145 Instead? Would you exercise the put at a stock price of $145? Yes No C-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Strike Put Call 7.63 FIGURE 2.10 Option prices on Apple (AAPL), April 18, 2017 3.80 Expiration May 12, 2017 May 12, 2017 May 12, 2017 June 16, 2017 June 16, 2017 June 16, 2017 135 140 145 135 140 1.61 8.05 4.80 2.50 1.17 2.71 5.60 2.07 3.90 6.65 Note: Apple stock price on April 18, 2017 was $141.20. Source: Compiled from data downloaded from Nasdaq www.nasdaq.com 145 Refer to the stock options on Apple in the Eigure 2.10. Suppose you buy an June expiration call option on 30 shares with the excise price of $145 6-1. If the stock price in June is $149, will you exercise your call? Yes ONo 0-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net profit of D a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % b-1. Would you exercise the call if you had bought the June call with the exercise price $140? Yes O No b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) 1-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % C-1. What If you had bought an June put with exercise price $145 Instead? Would you exercise the put at a stock price of $145? Yes No C-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Strike Put Call 7.63 FIGURE 2.10 Option prices on Apple (AAPL), April 18, 2017 3.80 Expiration May 12, 2017 May 12, 2017 May 12, 2017 June 16, 2017 June 16, 2017 June 16, 2017 135 140 145 135 140 1.61 8.05 4.80 2.50 1.17 2.71 5.60 2.07 3.90 6.65 Note: Apple stock price on April 18, 2017 was $141.20. Source: Compiled from data downloaded from Nasdaq www.nasdaq.com 145

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!