Question
Henry purchased a call option with an exercise price of $45 for a premium of $5. Before the option expired, the stock price rose to
Henry purchased a call option with an exercise price of $45 for a premium of $5. Before the option expired, the stock price rose to $52 and Henry exercised his option. What was the return (not annualized) to Henry?
75.0 percent
35.0 percent
50.0 percent
25.0 percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
