Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You sell a call option with a strike price of $30 at a time when the stock price is $27. The option price was $2
You sell a call option with a strike price of $30 at a time when the stock price is $27. The option price was $2 (per share covered by the option, as usual). at the same time you bought 100 shares of the stock. If the stock price at expiration is $34, and you unwind both the stock and option position at that time, what is your profit per share?
a.
$3
b.
$1
c.
$2
d.
$4
e.
$5
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