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An investor purchases a call option of Arab bank stocks and pay the cost of the contract $8 (premium). The exercise price of the option
An investor purchases a call option of Arab bank stocks and pay the cost of the contract $8 (premium). The exercise price of the option is $250, the date of execution is after one month and if the price of the stock at exercise date will be $220: * What is the type of call option (in the money, or out of the money, or at money)? * Does the investor execute its * If he does not execute it, how much does he lose! * If the investor does not execute it, how much does the contract buyer earn?
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