Question
A Microsoft January 18, 2021 call option with an exercise price of $115 costs $7. Microsoft trades today for $120. What is the profit or
A Microsoft January 18, 2021 call option with an exercise price of $115 costs $7. Microsoft trades today for $120. What is the profit or loss if you wrote (ie sold) the option and the stock fell to $110 at expiration. You do not own the stock:
a. $2 loss
b. $5 loss
c. $2 gain
d. $7 gain
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
