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You would like to buy some shares in the TD Bank in 6 months but are worried the price will rapidly increase with the postCovid
You would like to buy some shares in the TD Bank in 6 months but are worried the price will rapidly increase with the postCovid recovery. You buy a call option to purchase 600 shares with a six month maturity at a price of $69. You pay a premium of $1.75 per share for the call. Six months from now TD shares are trading at $75, calculate your profit or loss. (give loss as a negative value)
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