Question
Assume that an investor buysa three-month call option on IBM shares with an exercise price of $45, and pays apremium of $2.85 per share. Each
Assume that an investor buysa three-month call option on IBM shares with an exercise price of $45, and pays apremium of $2.85 per share. Each option is for5 shares. If 1 month later the share price of IBM is$52.91what isthe (intrinsic) profit or loss madeby the investor?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
