Call option question!! You have the following portfolio: You bought 1 share of company X at $80
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Question:
Call option question!! You have the following portfolio: You bought 1 share of company X at $80 per share You bought a 1 call option with a strike price of $90 per share, the expiration date of 1st of June 2014 for which you paid $10. What will be your profit (or loss) -excluding the cost of the put - on 1st June 2015 (at expiration) if the price of the stock is $200, $100, $90, $80, $60, or $50? Draw a diagram excluding the premium paid What did you achieve by buying a call? What was your view on the stock, what do you think of the stock? -- Show calculation formulas and reasoning. Thanks beforehand!
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