Question
The stock price of GameStop is currently $110 and the call option with strike price of $125 is $4. A trader purchases 300 shares of
The stock price of GameStop is currently $110 and the call option with strike price of $125 is $4. A trader purchases 300 shares of the stock and short 3 contracts of call options.
a. What is the maximum potential loss for the trader? (sample answer format: 25000) b. If the stock price is $130 with the call option at expiration, what is the traders net profit? (sample answer format: 25000)
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
