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Melvin has sold 100,000 call option contracts on GameStop with exercise price of $108 for a premium of $18. The contract size is 100, that
Melvin has sold 100,000 call option contracts on GameStop with exercise price of $108 for a premium of $18. The contract size is 100, that is, each contracts represents options on 100 shares and the premium paid is 100 times the quoted number. Due to Blog organizers the share price rose rapidly to $318 before Melvin was able to close out the position. What was Melvin's profit on the transaction?
Provide your answer in millions. (e.g. for 5,000,000 enter 5)
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