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
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
