Question
A call option on a stock, with time to maturity of 2 months and strike price of $24.42, is currently trading at a premium of
A call option on a stock, with time to maturity of 2 months and strike price of $24.42, is currently trading at a premium of $1.77 per share. If you buy options on 20,000 shares (200 contracts), and then at maturity the stock is trading at $20.23, what is your net profit from this position? PLEASE SHOW WORK
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
5th edition
9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169
