Question
Assume a January call option on chewy gum corporation has a strike price of $50 per share. Further assume that the market price for chewy
Assume a January call option on chewy gum corporation has a strike price of $50 per share. Further assume that the market price for chewy gum corporation stock is 54$ and the price of the option is 6$ per a share.
A-what is the intrinsic value of the call option?
B- If one were to exercise the option, what would the market price of the stock have to equal in order to break even?
C-If the price of the stock stayed at 54$ and did not change, how much would the buyer of the option have made or lost
D-If the price of the stock went up to 70$ what would ones return on invest be?
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