Question
Assume an investor buys a call option on XYZ stock with a strike price of $50 for $2 when the stock is trading for $47.
Assume an investor buys a call option on XYZ stock with a strike price of $50 for $2 when the stock is trading for $47.
a) What is the investor's break-even stock price at expiration? Enter your answer as a number with no dollar sign or decimal places.
b) What is the investor's maximum possible gain per share?
c) What is the investor's maximum possible loss? Enter your answer as a number with no dollar sign.
d) What is the investor's break-even stock price? Enter your answer as a number with no dollar sign.
e) What is the investor's maximum possible gain? Enter your answer as a number with no dollar sign.
f) What is the investor's maximum possible loss per share? Enter your answer as a number with no dollar sign.
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Master The Art Of House Flipping
Authors: Livia V. Velez
1st Edition
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