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An investor purchased a call optuon that allows her to putchase 100 shares of Dell Computer common stick for $45 per share any time during
An investor purchased a call optuon that allows her to putchase 100 shares of Dell Computer common stick for $45 per share any time during the next six months. The price she paid for the options was $2.50 or $250 total and the current matjet price of Dells stock is $42.50. if the price of Dell increases to $50 and the investor decides to exercise it whst will be the gain or loss that resukts from the option position that was held? ignore taxes and commissions.
the options are $250gain $750 gain $250 loss None of the above or $500 gain
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