9.1 An investor writes a call option priced at $3 with an exercise price of $100 on

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9.1 An investor writes a call option priced at $3 with an exercise price of $100 on a stock that he owns. The investor paid $85 for the stock. If at expiration of the call option the stock price has risen to $110, the profit for the investor’s position would be closest to

a. $3.

b. $12.

c. $18.

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Fundamentals Of Investing

ISBN: 9781292316970

14th Global Edition

Authors: Lawrence Gitman

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