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Gain or loss on settlement? On April 1, 2019, Wilson Corp. purchased a call option on shares of FVA stock. The contract was for 100
Gain or loss on settlement?
On April 1, 2019, Wilson Corp. purchased a call option on shares of FVA stock. The contract was for 100 shares at a strike price of $110 per share, with an expiration date of June 30, 2019. The option contract premium was $50. Wilson settled the option on June 15, when a market appraisal estimated the time value of the option to be $30. Prices of FVA stock during the option period are provided below. April 1 June 15 June 30 Price of FVA stock: $110 $115 $105 Compute the gain or loss on settlement of the option contract. (Negative amounts should be indicated with a minus sign.) Gain or Loss on settlement?: Amount of Gain or (Loss)
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