Question
A Canadian trader sells 100 call options on a stock with a strike price of $50 for $5 per option. In order to protect herself
A Canadian trader sells 100 call options on a stock with a strike price of $50 for $5 per option. In order to protect herself from potential unlimited losses, the trader covers her position by buying 100 shares of the stock for $54 per share. The trader closes all her positions when the stock price is trading at $13. What is the trader's profit?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 10th Edition
1337902578, 978-1337902571
