Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You sold (wrote) a 3-month call option (long call) with a strike price of $50 and received a premium of $2.61. If the option expires
You sold (wrote) a 3-month call option (long call) with a strike price of $50 and received a premium of $2.61. If the option expires with a stock price of $55, what is your profit/loss per contract?
loss 5.00 per contract
loss 2.39 per contract
gain 2.39 per contract
gain 5.00 per contract
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