Question
You write one ABC August 85 call contract for a premium of $3.97. The option is held until the expiration date, when ABC stock sells
You write one ABC August 85 call contract for a premium of $3.97. The option is held until the expiration date, when ABC stock sells for $88 per share.
What is yourtotalprofit on this investment?
You take a long position in one XYZ October 55 put contract for a premium of $1.81. You hold the option until the expiration date, when XYZ stock sells for $55 per share.
What is your profit on this investment on aper sharebasis?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
