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Tesla Inc. is traded at $480.01 per share when Nancy sold a call option today. The call premium is $86 and the exercise price is
Tesla Inc. is traded at $480.01 per share when Nancy sold a call option today. The call premium is $86 and the exercise price is $500. The option will be expired on August 21, 2020.
- What are Nancys maximum profit and maximum loss?
- Show the profit/loss if, at the expiration date, the Tesla price is (1) $400, (2) $530, (3) $700 ?
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