Question
Jason is bearish on USBank; so he instructs his broker to sell 15/10/2020 European 1200 call options on USBank with an exercise price of $50
Jason is bearish on USBank; so he instructs his broker to sell 15/10/2020 European 1200 call options on USBank with an exercise price of $50 each share. Bill agrees to buy these options and pays the premium of $2 each share.
(a) What will be Jasons gain or loss, if USBanks price is $55 each share on 15/10/2020?
(b) What will be Jasons gain or loss, if USBanks price is $47 each share on 15/10/2020?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
