Question
A) On June 19, 2021, a company purchases a call option for $ 613.99, which gives the company the right to buy 100 shares of
A) On June 19, 2021, a company purchases a call option for $ 613.99, which gives the company the right to buy 100 shares of XYZ for $23.92 each until December 1, 2021. XYZ Inc shares are currently trading for $23.92. At June 30, 2020the option is trading at $83267 and the shares at $ 26.11 each and the company recorded the gain or loss. At December 31, 2021, the options expire with no value. On July 1the option is exercised. Calculate the amount of value of the new investment on this date.
B) On June 19 , 2021, a company purchases a call option for $ 613.99, which gives the company the right to buy 100 shares of XYZ Inc. for $ each until December 1, 2021. XYZ Inc shares are currently trading for $ 23.92. 30, 2020, the option is trading at $832.67 and the shares at $ 26.11 each and company recorded the gain or loss. At December 31, 2021the options expire with no value On July 1the option is exercised. Calculate the gain or loss at the time of this transaction.
C)On June 192021 , a company purchases a call option for $613.99, which gives the company the right to buy 100 shares of XYZ Inc. $23.92 each until December 1, 2021. XYZ Inc. shares are currently trading for $23.92. At June 30, 2020the option is trading at $832,67 and the shares at 26.11 each. At December 312021the options expire with no value. On 1. the option is exercised the amount of cash the company would need to pay time.
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