Question
Shares of BioTech Corporation are currently trading for $16.80. Call options on BioTech Corporation shares, which expire in six months with a strike price of
Shares of BioTech Corporation are currently trading for $16.80.
Call options on BioTech Corporation shares, which expire in six months with a strike price of $21.45,
are trading for $3.50. A trader buys one call option contract. Assume that there is one share per contract. At maturity, what is the payoff to the call option holder if the stock price is $22.06?
The payoff to the call option holder is $ (Round to the nearest cent.)
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
