1 answer

37) 57) What would be the profit or loss per share of stock to an investor...

Question:

37) 57) What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option
37) 57) What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option with an exercise price of $130 if Apple closed on the expiration date at S120? Assume the option premium was $3.00. A) $3.00 gain D) 57.00 gain

Answers

Call option will not be used as the stock price has closed below the expiration date, so the only loss to the call buyer is the premium he has paid,

Thus the answer is b) $3.00 loss

.

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