Question
Consider the following data for Stock GGG and then answer the question below. Current Price of Stock GGG $30.00 Exercise Price of 3-month Call $30.00
Consider the following data for Stock GGG and then answer the question below.
| Current Price of Stock GGG | $30.00 |
| Exercise Price of 3-month Call | $30.00 |
| Market Price of Call | $5.00 |
If at expiration of the call option the price of the stock is at $37.20, what would be the % return earned or lost by a buyer of the call option?
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
