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Jordan wants to purchase Apple stock (current price is $200 per share). She expects the stock price to increase greatly over the next few months.
Jordan wants to purchase Apple stock (current price is $200 per share). She expects the stock price to increase greatly over the next few months. She does not have enough cash to purchase the security today, but she will have the funds in three months. Jordan purchases a call option on Apple stock that allows her to purchase the stock at $200 per share any time within the next 3 months. She pays $250 for the option. What will be her profit if the price of Apple stock in three months is $100?
a. (250)
b. 350
c. (200)
d. 100
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