Question

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 "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) ints In/out of the Money? (Click to select) (Click to select) (Click to select) (Click to select) Today's Stock Price Return Company Option Strike Profit Exercise? Prenium (Click to select)v (Click to select) v (Click to select) v (Click to select) e.98 Call $10.26 10 ABC e.83 $1e.26 Put 10 ABC eBook e.93 $23.93 $23.93 Call 25 ABC 2.13 25 ABC Put Print 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. References Today's Stock In/Out of the Money? (Click to select) Return Profit Company Option Strike Exercise? Premium Price (Click to select) (Click to select)v (Click to select) v (Cick to select)v e.98 $11.23 10 Call ABC (Click to select) (Click to select) (Cick to select) e.83 $11.23 10 Put ABC e.93 $27.00 $27.00 Call 25 ABC 2.13 25 ABC Put

Answer 1

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ke - Microsoft Excel (Product Activation Failed) Page Layout Formulas File Home Insert Data Review View Add-Ins * Cut E AutoSum - E Wrap Text Calibri -11 General EE Copy - E Fill- E E Paste B I U - Conditional Format Cell Insert Delete Format Sort & Find & Merge & Center Format Painter Clear Filter Select Formatting as Table - Styles Clipboard Font Alignment Number Styles Cells Editing fe BJ101 BA BB BC BD BE BF BG ВН BI BJ BK 85 PROFIT/PREMIUM*100 in/out of strike today's 86 company option price 87 premium exercise profit return money IN THE MONEY -73.47% [-0.72/0.98] ABC 0.98 88 CALL 10 10.26 YES 10.26-10-0.98 = -0.72 89 ABC PUT 10 10.26 OUT OF THE MONEY 0.93 NO -0.93 -100.00% -100.00% 90 ABC CALL 25 23.93 OUT OF THE MONEY 0.93 NO -0.93 IN THE MONEY 91 ABC PUT 25 23.93 2.13 YES 25-23.93-2.13 = -1.06 -49.77% 92 93 in/out of PROFIT/PREMIUM*100 strike today's 94 company option profit exercise 95 return money IN THE MONEY 25.51% [0.25/0.98] 96 ABC CALL 10 11.23 0.98 YES 11.23-10-0.98 = 0.25 11.23 OUT OF THE MONEY IN THE MONEY -0.93 97 ABC PUT 10 0.93 NO -100.00% 115.05% CALL 27-25-0.93 =1.07 98 ABC 25 27 0.93 YES 99 ABC PUT 25 27 OUT OF THE MONEY 2.13 NO -2.13 -100.00% 100 101 102 103 DIR right SANDRINE DGM beta LEASING PV, FV, ANNUITY clean UTILITY, SHARPE, beta CoNvexity port future INDEX YIELD bond portfolio 130 % KE CAPM INTL CAP BUD WACC ferences 05:40 O *0 ENG 15-12-2019