Question
Assume that an investor purchased 1 share of XYZ Ltd last year for $39.93 and this year, with the share price at $45.9, writes a
Assume that an investor purchased 1 share of XYZ Ltd last year for $39.93 and this year, with the share price at $45.9, writes a three-month call option with an exercise price of $50. If the writer receives a premium of $3.46 what isthe total 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
