Question
A speculator buys a call option with a strike of $30 for $3. The stock is currently priced at $28 and rises to $35 on
A speculator buys a call option with a strike of $30 for $3. The stock is currently priced at $28 and rises to $35 on the expiration date. The speculator will exercise the option on the expiration date (if it is feasible). What is the speculator's profit per unit?
| $7 | ||
| $5 | ||
| $3 | ||
| $2 | ||
| -$3 |
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Public Finance Theory And Practice
Authors: M. Marlow
1st Edition
0030969603, 978-0030969607
