Sarawat writes a call option on BAR stock with an exercise price of ₱150 per share on October 2022 with an expiration sold for ₱5 on April 2023. What is the gain or loss on the transaction if the price of BAR stock on April 2023 is ₱125?  What is the gain or loss on the transaction if the price of BAR stock on April 2023 is ₱175?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Sarawat writes a call option on BAR stock with an exercise price of ₱150 per share on October 2022 with an expiration sold for ₱5 on April 2023.

  1. What is the gain or loss on the transaction if the price of BAR stock on April 2023 is ₱125? 
  2. What is the gain or loss on the transaction if the price of BAR stock on April 2023 is ₱175? 
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