Question
You purchase three call contracts for a premium of $7.5/per share, the exercise price is $124. You hold the option until the expiration date, when
You purchase three call contracts for a premium of $7.5/per share, the exercise price is $124. You hold the option until the expiration date, when the stock sells for $130.
(a) will you exercise the contract?
(b) what is your pay off on those three calls?
(c) what is your net profit on this investment?
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Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Global Edition
1292422114, 9781292422114
