Question
Emily wrote an uncovered call option with an exercise price of $40 and received $300 for the contract. When the price of the stock reached
Emily wrote an uncovered call option with an exercise price of $40 and received $300 for the contract. When the price of the stock reached $55, the call option holder decided to exercise the call. Ignoring commissions and taxes, what would Emilys dollar return on this investment be?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
