Problem

Turn back to Figure 2.9 and look at the Intel options. Suppose you buy a November expirati...

Turn back to Figure 2.9 and look at the Intel options. Suppose you buy a November expiration call option with exercise price $21.

a.   Suppose the stock price in November is $21.75 Will you exercise your call? What is the profit on your position?

b.   What if you had bought the November call with exercise price $22?

c.   What if you had bought a November put with exercise price $22?

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Solutions For Problems in Chapter 2