A 6-month call option contract on 100 shares of Home Depot common stock with a strike price of $49.95 can be purchased for $517. Assuming that the market price of Home Depot stock rises to $65.72 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? CITD The profit this option would generate over the 6-month holding period is $(Round to the nearest cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A 6-month call option contract on 100 shares of Home Depot common stock with a strike price of $49.95 can be purchased for $517. Assuming that the market price of Home Depot stock rises to
$65.72 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return?
The profit this option would generate over the 6-month holding period is $ (Round to the nearest cent.)
Transcribed Image Text:A 6-month call option contract on 100 shares of Home Depot common stock with a strike price of $49.95 can be purchased for $517. Assuming that the market price of Home Depot stock rises to $65.72 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? The profit this option would generate over the 6-month holding period is $ (Round to the nearest cent.)
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