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