Question: Problem 2-18 Refer to Table 2.7 and look at the IBM options. Suppose you buy a July 2016 expiration call option with exercise price $150.

Problem 2-18 Refer to Table 2.7 and look at the IBM options. Suppose you buy a July 2016 expiration call option with exercise price $150. a-1. Suppose the stock price in July is $153.70. Will you exercise your call? Yes No a-2. What is the profit (loss) on your position? (Enter your answer as a positive value rounded to 2 decimal places.) Table 2.7 Explration Strike Call Put 6.60 1.57 3.30 Prices of stock options on IBM, May 10, 2016 June June June July July July 145 150 155 145 150 155 3.31 1.27 4.43 2.28 Note: IBM stock on this day was $149.97. Source: Compiled from data downloaded from Yahool Finance, May 10

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