Question
A trader sells (or writes, or shorts) 100 European call options on a stock with a strike price of $22 and a time to maturity
A trader sells (or "writes", or "shorts") 100 European call options on a stock with a strike price of $22 and a time to maturity of one year. Each option is on one share of stock. The price of each option is $4. One year later, the price of the underlying asset proves to be $25. What is the traders profit?
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Pricing Analytics Models And Advanced Quantitative Techniques For Product Pricing
Authors: Walter R. Paczkowski
1st Edition
1138623938, 9781138623934
