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Sasha purchased a call option to buy 100 shares of Search Computer stock six months from the option purchase date at $54 per share. The

Sasha purchased a call option to buy 100 shares of Search Computer stock six months from the option purchase date at $54 per share. The cost of the option was $325.50. The per share price of the stock was $54.25 when Sasha bought the option, and the price six months later was $55.80. Find Sasha's annual yield if he sold the option for its value right before its expiration.



How does this compare with the annual yield he would have received if he had used his $325.50 to purchase six shares of the stock, which he sold at the end of the six months?

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To calculate Sashas annual yield from the call option we need to determine the profit he made from selling the option The cost of the option was 32550 and Sasha purchased the option to buy 100 shares ... blur-text-image

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