Consider the following information on AAPL. The current stock price is $326.72. The call option has a strike price of $320. The price of the call option is $68. The option has 1 year till expiration. Question: Suppose you purchase the option at the current price and hold it until expiration. If the stock price at expiration is $350, the return on your investment is: O .55.88% 44.11% -100% None of the above
Consider the following information on AAPL. The current stock price is $326.72. The call option has a strike price of $320. The price of the call option is $68. The option has 1 year till expiration. Question: Suppose you purchase the option at the current price and hold it until expiration. If the stock price at expiration is $350, the return on your investment is: O .55.88% 44.11% -100% None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Consider the following information on AAPL. The current stock price is $326.72. The call option has a strike price of $320. The price of the call option is $68. The
option has 1 year till expiration.
Question:
Suppose you purchase the option at the current price and hold it until expiration. If the stock price at expiration is $350, the return on your investment is:
-55.88%
44.11%
-100%
None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1aa1a4f6-2b03-4e3d-9b2b-8b276c63db89%2F9bcf40a6-09b6-405f-8f97-ce6eb660cd60%2Fyly2ow_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following information on AAPL. The current stock price is $326.72. The call option has a strike price of $320. The price of the call option is $68. The
option has 1 year till expiration.
Question:
Suppose you purchase the option at the current price and hold it until expiration. If the stock price at expiration is $350, the return on your investment is:
-55.88%
44.11%
-100%
None of the above
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