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FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Expiration Strike Call...

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Finance

FIGURE 2.10 Stock options on Microsoft, September 4, 2019

Expiration Strike Call Put
27-September-2019 130 8.65 1.03
27-September-2019 135 4.82 2.17
27-September-2019 140 1.99 4.35
15-November-2019 130 11.50 3.55
15-November-2019 135 8.12 5.15
15-November-2019 140 5.32 7.40

Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance.

Refer to the stock options on Microsoft in the figure 2.10. Suppose you buy a November expiration call option on 200 shares with the excise price of $135. What is the rate of return on your position?

What is the net profit loss on your position?

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