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Assume you bought a call option contract on ABC stock for $1.50/share. The call has an exercise price of $30/share and three months to maturity.
- Assume you bought a call option contract on ABC stock for $1.50/share. The call has an exercise price of $30/share and three months to maturity. At the time you bought the option, the price of the underlying asset was $29/share. If at expiration the price of the underlying is $35/share
- Calculate the rate of return on your investment.
- What would your rate of return be if you had bought the stock instead of the call?
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
