Question
Suppose you purchase one European call option on WFM Co. with a May expiration, exercise price=$100 and option premium= $5. At the same time you
Suppose you purchase one European call option on WFM Co. with a May expiration, exercise price=$100 and option premium= $5. At the same time you write one European call option on WFM Co. with a May expiration, exercise price=$105, option premium= $2. If, at expiration, the price of a share of WFM stock is $103, how much would your profit would be?
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
9th Edition
032431986X, 9780324319866
