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Suppose you pay $5,000 to buy an alternative call option with the following terms: -the underlying asset is 1,000 shares of AAPL OR 1,000 shares
Suppose you pay $5,000 to buy an alternative call option with the following terms:
-the underlying asset is 1,000 shares of AAPL OR 1,000 shares or SSNG
-the strike price for AAPL is 175
-the strike price for SSNG is 225.
What is the NET profit for this trade if, on the expiration date, AAPL settles at 200 and SSNG settles at 249?
- A.
$20,000
- B.
$49,000
- C.
$44,000
- D.
$25,000
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