Question
Barry thinks that Bubbly Bathtub's stock price is going to increase from its current price of $25.50 sometime during the next 6 months. Barry can
Barry thinks that Bubbly Bathtub's stock price is going to increase from its current price of $25.50 sometime during the next 6 months. Barry can buy a 6-month call option on Bubbly's stock for a price of $7.22. The call option has an exercise price of $28. If Barry purchases the call option for $7.22 and Bubbly's stock price rises to $27 by the time the option expires, what would Barry's $ profit or loss be?
Enter your answer below without a dollar sign. For example, if you answer is -$15.55, enter it as -15.55 of if your answer is $25.35, enter it as 25.35.
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