With regard to futures options, how much profit would an investor make if she bought a call option on gold at 8.28 when gold was trading at $484 an ounce, given that the price of gold went up to $537 an ounce by the expiration date on the call? (Note: Assume the call carried a strike price of 480.)
With regard to futures options, how much profit would an investor make if she bought a call option on gold at 8.28 when gold was trading at $484 an ounce, given that the price of gold went up to $537 an ounce by the expiration date on the call? (Note: Assume the call carried a strike price of 480.)
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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Subject:- finance
Transcribed Image Text:With regard to futures options, how much profit would an investor make if she bought a call option on gold at 8.28 when gold was
trading at $484 an ounce, given that the price of gold went up to $537 an ounce by the expiration date on the call?
(Note: Assume the call carried a strike price of 480.)
The profit would be $
(Round to the nearest dollar.)
Note: incorrect- $48.7248.72.
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