Question
A 5 -month call option contract on 100 shares of Home Depot common stock with a strike price of $ 50.15 can be purchased for
A
5
-month
call option contract on 100 shares of Home Depot common stock with a strike price of
$ 50.15
can be purchased for
$ 505
.
Assuming that the market price of Home Depot stock rises to
$ 65.65
per share by the expiration date of the option, what is the call holder's profit? What is the holding period return?
The profit this option would generate over the
5
-month
holding period is
$nothing
.
(Round to the nearest cent.)
The
5
-month
holding period return is
nothing
%.
(Round to the nearest whole percent.)
The annual holding period return is
nothing
%.
(Round to the nearest whole percent.)
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