Question
Today you are selling a call option on ABC stock. The call option has a strike price of $17, 10 months to expiration, and currently
Today you are selling a call option on ABC stock. The call option has a strike price of $17, 10 months to expiration, and currently trades at a premium of $8 per share. If at maturity the stock is trading at $13, what is your net profit on this position? Keep in mind that one option covers 100 shares (multiply profit per share by 100)
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Step: 1
To calculate the net profit on the position we need to consider the premium ...
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
