An investor purchases 25 call option contracts at a price of $1.86 and a strike price of $50. At expiration, the stock price is $47.62. What is the profit on this transaction? (Each option is for 100 shares.) Question 3 options: A) -$10,600 B) $5,950 C) -$4,650 D) -$5,950 E) $1,300
An investor purchases 25 call option contracts at a price of $1.86 and a strike price of $50. At expiration, the stock price is $47.62. What is the profit on this transaction? (Each option is for 100 shares.) Question 3 options: A) -$10,600 B) $5,950 C) -$4,650 D) -$5,950 E) $1,300
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
Section: Chapter Questions
Problem 1PS
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An investor purchases 25 call option contracts at a price of $1.86 and a strike price of $50. At expiration, the stock price is $47.62. What is the profit on this transaction? (Each option is for 100 shares.)
Question 3 options:
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