The current price (10/22/23) of Tesla stock (TSLA) is $211.99. An investor whoholds 100 shares of TSLA believes the stock will rise in value. A call option can bepurchased, which provides the option to buy TSLA stock at a set price sometime inthe future. The investor buys a call option on 100 shares today, at a price of $14.00per share. The option has a strike price of $205 per share. The option expires onNovember 3, 2023. How much does the option cost the investor today?O $1,400O $211.99O $21,199O $20,500

Current price: $211.99Strike price: $205Call option premium: $14Number of shares: 100

Answered: The current price (10/22/23) of Tesla…

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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