Question
Assume you just bought 250 call contracts (each contract contains 100 shares) on shares of Company A. The options can be exercised in one years
Assume you just bought 250 call contracts (each contract contains 100 shares) on shares of Company A. The options can be exercised in one years time at the strike price of $40. You paid $0.60 premium per share. The shares of the company are currently selling at $36 per share. If the company's share price rises to $45 in one years time, what will be your net gain from the call options? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)
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