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Please help me quick! Rosa purchased three call option contracts on ABC stock with a strike price of $27.50 when the option was quoted at
Please help me quick!
Rosa purchased three call option contracts on ABC stock with a strike price of $27.50 when the option was quoted at $1.10 per share. The option expires today when the value of ABC stock is $29.30. Ignoring trading costs and taxes, what is the net profit on this investment?
A) $0
B) $210
C) $330
D) $140
Here is my answer: but I don't see it in the options
Profit on call option contract:
= (Stock price - Strike price - Call price)100
= ($29.30-$27.50-$1.10)100
= $0.70100
= $70
Hence, correct option is A) $70
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