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You purchase 80 call options on Greshak Corp. to increase returns on your equity portfolio.The six month calls specify the strike price is $32.00 and
You purchase 80 call options on Greshak Corp. to increase returns on your equity portfolio.The six month calls specify the strike price is $32.00 and require a premium of $2.50.If Greshak's stock is trading at $35.50 at the time the options expire, what are your options worth?What was your net profit (in dollars and as an annualized percentage)?What would your profit in dollars and as an annualized percentage had been if the stock instead sold for $34.50/share at expiration?How about $33.50/share?
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