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A call option on Tesla stocks (TSLA) with a strike price of $600 is selling for $20. TSLA is currently selling for $610. You believe
A call option on Tesla stocks (TSLA) with a strike price of $600 is selling for $20. TSLA is currently selling for $610. You believe the stock price will increase. You have $100 now and buy 5 call options. . If in two weeks TSLA increases to $650 and you exercise your option, how much will your $100 investment will grow/fall to? Note that the question asks what the total value of the investment will be, not net gains.
a. 250
b. 100
c. -250
d. -100
e. 0
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