Question
You bought Stock A at a purchase price of: $25 Call option strike price: $25 Option expiration date: June 30, 2022 Price of call option:
You bought Stock A at a purchase price of: $25 Call option strike price: $25 Option expiration date: June 30, 2022 Price of call option: $5
a) What is the return on the stock if you sell when stock goes up to 50?
Assume that you bought only the stock, and not the call option.
Express as positive or negative percent to nearest whole percent.
b) If you bought only the call option, what is the percentage return on the option if you sell when stock goes up to 50?
c) What is the percentage return on the stock if you sell when stock goes down to $5?
Assume that you bought only the stock, and not the call option.
d) If you bought only the call option, what is the percentage return if you sell when stock goes down to $5?
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