Question
Let us say you purchase one IBM July 125 call contract (equaling 100 shares) for a premium of $5. You hold the option until the
Let us say you purchase one IBM July 125 call contract (equaling 100 shares) for a
premium of $5. You hold the option until the expiration date when IBM stock sells for $130
per share. What is your profit/loss on your investment in IBM when the stock sells at $130? Find
out the break-even point of your investment in this call option contract. What can be your
maximum and minimum profit/loss on this call contract?
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The Future Of Money How The Digital Revolution Is Transforming Currencies And Finance
Authors: Eswar S. Prasad
1st Edition
0674258444, 978-0674258440
