Question
Lucy constructed an option strategy by selling a call option with a strike price of $81 on a stock and simultaneously purchasing a put option
Lucy constructed an option strategy by selling a call option with a strike price of $81 on a stock and simultaneously purchasing a put option with a strike price of $74 on the same stock and expiration. The premium for the call option is $7. Assume that the stock price at expiration is $86 per share. What is Lucys profit on the call option at expiration?
| A. | $7 | |
| B. | $2 | |
| C. | $12 | |
| D. | $5 |
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Personal Finance
Authors: Jack Kapoor
13th Edition
1260799735, 9781260799736
