Question
10. You purchase a call option on Xyzz stocks today with one-month expiration and the strike price of $1,000. The option price is $20 per
10. You purchase a call option on Xyzz stocks today with one-month expiration and the strike price of $1,000. The option price is $20 per share. The Xyzz stock price is $1,000 per share. Suppose that the Xyzz stock price decrease to $900 at the expiration. What is the rate of return on your investment?
A. -100%
B. -11.76%
C. -12%
D. 400%
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
