Question
You are buying 5 contracts of a call option with an exercise (strike price) of $100. You pay $10 premium per share. You exercise this
You are buying 5 contracts of a call option with an exercise (strike price) of $100. You pay $10 premium per share. You exercise this option after three months when the stock price reaches at $130. The annualized rate of return in this trade is:
a. 10%
b. 100%
c. 400%
d. None of the above. My answer is ....................
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
