Question
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
The answers are given however i need to know the steps in order to solve
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Essentials Of Financial Management Text And Cases
Authors: George C Philippatos
1st Edition
0816267162, 978-0816267163
