Question
You purchase 10 call option contracts on TGX stock. The strike price is $42, and the premium is $1.5 per share. The contract size is
You purchase 10 call option contracts on TGX stock. The strike price is $42, and the premium is $1.5 per share. The contract size is 100 shares.
a. If the stock is selling for $44 per share at expiration, what are your call options worth? (3 marks)
b. What is your net profit? (3 marks)
c. What if the stock were selling for $43? $40? (4 marks)
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
