. Suppose you bought a CALL option on a share of Tesla stock (Strike Price $300, Expiration...
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Question:
. Suppose you bought a CALL option on a share of Tesla stock (Strike Price $300, Expiration Date 11/1/2020) today for a price of $5. On the expiration date, the price of a share of Tesla is $295. Answer the following questions using the information above. [(2+3) + 4 + 4 + 2 = 15 points]
1- Is it in your best interest to exercise the CALL option? Why?
2- What is your Payoff (nearest dollar)?
3-What is your profit (nearest dollar)?
4-This call option is _________ money
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