Question
ABC is currently trading at $30.00 per share. Jill thinks the stock price will increase to $35.00 before the end of the month. She buys
ABC is currently trading at $30.00 per share. Jill thinks the stock price will increase to $35.00 before the end of the month. She buys a call option contract (100 shares) for $1.25 per share. If the price rises and she ultimately executes at $34.25.
- What is her gain?
- What is her gain as a percentage of her investment?
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Pricing And Hedging Financial Derivatives A Guide For Practitioners
Authors: Leonardo Marroni, Irene Perdomo
1st Edition
1119953715, 978-1119953715
