Question
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 |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
9th Edition
032431986X, 9780324319866
