You bought 3 contracts of 6-month call options on stock XYZ @ $3.86 per call, with strike price of 49.00. Today the call contracts expired when the stock closed at 50.08.
You bought 3 contracts of 6-month call options on stock XYZ @ $3.86 per call, with strike price of 49.00. Today the call contracts expired when the stock closed at 50.08.
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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Question
You bought 3 contracts of 6-month call options on stock XYZ @ $3.86 per call, with strike price of 49.00. Today the call contracts expired when the stock closed at 50.08.
Expert Solution
Step 1
A call option is the right to buy the underlying asset at a given date in future and also at a predetermined price.
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