Suppose you purchase nine call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.00. If, at expiration, the stock is selling for $68 per share, what are your call options worth? What is your net profit?

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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Suppose you purchase nine call contracts on Macron
Technology stock. The strike price is $65, and the premium
is $2.00. If, at expiration, the stock is selling for $68 per
share, what are your call options worth? What is your net
profit?
Value of call options
Net profit
Transcribed Image Text:Suppose you purchase nine call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.00. If, at expiration, the stock is selling for $68 per share, what are your call options worth? What is your net profit? Value of call options Net profit
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