Question
A 6-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased for $500.00. Assuming
A 6-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased for $500.00. Assuming that the market price of Home Depot stock rises to $65.00 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 -month holding period is $__. (Round to the nearest cent.)
The -month holding period return is __%. (Round to the nearest whole percent.)
The annual holding period return is __%. (Round to the nearest whole percent.)
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