Question
Suppose a stock is trading at $57.11. A market participant writes 9 call option contracts (where 1 contract is for 100 shares) on the stock
Suppose a stock is trading at $57.11. A market participant writes 9 call option contracts (where 1 contract is for 100 shares) on the stock with a strike price of $61.14 when the option price is $4.98 per share. Over time, the stock price monotonically decreases to $42.06. What is the market participants net profit or loss?
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Financial Management Theory And Practice
Authors: Eugene F Brigham, Michael C Ehrhardt
11th Edition
0324259689, 9780324259681
