Question
Pitchgent, Inc., stock is currently trading at $22 per share. There are two types of options available on the stock. Call options with a strike
Pitchgent, Inc., stock is currently trading at $22 per share. There are two types of options available on the stock. Call options with a strike price of $16, which expire next month, are currently trading at $7.00. Put options with a strike price of $16 which expire next month are currently trading at $1.10. Larry invests $132 in common stock. Keaty invests $132 in the call options. Marek invests $132 in the put options. At the end of one month, the price of Pitchgent, Inc., is $25. Who made the most money off of their investment?
A) Marek
B) Keaty
C) Larry and Keaty Tied
D) Larry
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