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The following information is for an Apple option (Expires 1/15/2021): Strike Price: 320.00 Last Price: 187.60 Bid: 183.40 Ask: 185.25 Suppose you buy this option.
The following information is for an Apple option (Expires 1/15/2021):
Strike Price: 320.00
Last Price: 187.60
Bid: 183.40
Ask: 185.25
Suppose you buy this option. What is the price that you pay? If the stock price on Jan 15th, 2021 is $325, will you exercise your call? What is the profit on your position?
If the stock price on Jan 15th, 2021 is $315, will you exercise your call? What is your payoff on your position?
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