Question
A 6-month call option on 100 shares of SRS Corp. stock is selling for $320. The strike price for the option is $80. The stock
A 6-month call option on 100 shares of SRS Corp. stock is selling for $320. The strike price for the option is $80. The stock is currently selling at $79 per share. Ignoring brokerage fees, what price must the stock achieve to just cover the expense of the option? If the stock price rises to $85, what will the net profit on the option contract be?
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Financial Modeling An Introductory Guide To Excel And VBA Applications In Finance
Authors: Joachim Häcker, Dietmar Ernst
1st Edition
1137426578, 978-1137426574
