Question
Consider the following data for Stock XYZ and then answer the question below. Price of Stock XYZ $30.00 Exercise Price of 3-month Call $25.00 Market
Consider the following data for Stock XYZ and then answer the question below.
| Price of Stock XYZ | $30.00 |
| Exercise Price of 3-month Call | $25.00 |
| Market Price of Call | $8.00 |
If at expiration of the call option the price of the stock is at $43.00, what would be the % return earned or lost by a buyer of the call option?
Enter your answer below as a whole number without any % signs. For example, if your answer is -50%, enter it as -50. If its 35%, enter it as 35.
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
