Question
1) Suppose I buy one CALL option on Wendy's with a strike price of $20.50.The option premium is $11.00. Suppose the price of Wendy's is
1) Suppose I buy one CALL option on Wendy's with a strike price of $20.50.The option premium is $11.00. Suppose the price of Wendy's is $35.00 a share and I choose to exercise the option. What are my total gains or losses?
A. | Profit $350.00 | |
B. | Loss $350.00 | |
C. | Profit $1,450.00 | |
D. | Loss $1,450.00 |
2) Suppose I buy one PUT option on Walmart with a strike price of $94.The option premium is $1.14. Suppose the price of Walmart is $91.50 a share and I choose to exercise the option. What are my total gains or losses?
Profit $250.00 | ||
Loss of $250.00 | ||
Loss of $136.00 | ||
Profit of $136.00 |
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