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Sears is selling at $10/share. You can get a 3 month call option with an $11 strike price for $50 You buy 100 options and
- Sears is selling at $10/share. You can get a 3 month call option with an $11 strike price for $50
- You buy 100 options and at expiration Sears is selling for $15. What is the payoff? $400
What is the profit? $250 If instead you had invested in the stock, what would your profit be? 15 shares of stock gives $75 profit
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
