Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You buy a call option on a stock for a premium of $0.50. The exercise price is $31.50. What is the options profit or loss
You buy a call option on a stock for a premium of $0.50. The exercise price is $31.50. What is the options profit or loss if just prior to expiration the stock price is $30.50?
a. | ($1.00) | |
b. | $0.50 | |
c. | $1.00 | |
d. | ($0.50) | |
e. | $0 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started