Question: View the table below and look at the Microsoft options. Suppose you buy a January expiration call option with exercise price $100. a. Suppose the

View the table below and look at the Microsoft options. Suppose you buy a January expiration call option with exercise price $100.

a. Suppose the stock price in January is $103. Will you exercise your call? What is the profit on your position?

b. What if you had bought the January call with exercise price $95?

c. What if you had bought a January put with exercise price $105?

*Please explain how you get the answer. I'm struggling to understand when you would and wouldn't exercise call.

View the table below and look at the Microsoft options. Suppose you

Expiration Strike Call Put 18-Jan-2019 18-Jan-2019 18-Jan-2019 8-Feb-2019 8-Feb-2019 8-Feb-2019 95 100 105 95 100 105 7.65 3.81 1.45 9.50 5.60 3.08 0.98 2.20 4.79 2.86 3.92 6.35 Note: Microsoft stock on this day was $101.51

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