Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a...

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Finance

Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $235.
Required:
a-1. If the stock price at option expiration is $246, will you exercise your call?
a-2. What is the net profit or loss on your position?
a-3. What is the rate of return on your position?
b-1. Would you exercise the call if you had bought the November call with the exercise price $230?

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