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Assume you purchased four call option contracts with 90 days until the expiration date on a Stock BB with a strike price of $70 and

Assume you purchased four call option contracts with 90 days until the expiration date on a Stock BB with a strike price of $70 and a premium of $2.50. The stock is currently trading at $68 and assume that at expiration, Stock BB is trading at $75.80: a) What are your call options worth at expiration?

b) What is your net profit on the call option contracts?

c) Using a HPR, what is the rate of return over the 3 month period?

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