a. You have just purchased the options listed below. Based on the information given, indicate whether...

a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter “0” if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.)

Company	Option	Strike	Today's Stock Price	In/Out of the Money?	Premium	Exercise?	Profit	Return
ABC	Call	10	$10.26	(Click to select) In the money Out of the money	1.10	(Click to select) Yes No		%
ABC	Put	10	$10.26	(Click to select) In the money Out of the money	0.95	(Click to select) Yes No		%
ABC	Call	25	$23.93	(Click to select) In the money Out of the money	1.05	(Click to select) Yes No		%
ABC	Put	25	$23.93	(Click to select) In the money Out of the money	2.25	(Click to select) Yes No		%

b. Now suppose that time has passed and the stocks’ prices have changed as indicated in the table below. Recalculate your answers to part a.

Company	Option	Strike	Today's Stock Price	In/Out of the Money?	Premium	Exercise?	Profit	Return
ABC	Call	10	$11.23	(Click to select) In the money Out of the money	1.10	(Click to select) Yes No		%
ABC	Put	10	$11.23	(Click to select) In the money Out of the money	0.95	(Click to select) Yes No		%
ABC	Call	25	$27.00	(Click to select) In the money Out of the money	1.05	(Click to select) Yes No		%
ABC	Put	25	$27.00	(Click to select) In the money Out of the money	2.25	(Click to select) Yes No		%

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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a. You have just purchased the options listed below. Based on the information given, indicate whether...

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