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Title: Suppose you believe that Johnson Companys stock price is going to increase from its current level of ... Post by: Jgal on Aug 26, 2023 Suppose you believe that Johnson Company’s stock price is going to increase from its current level of $22.50 sometime during the next 5 months. For $310.25 you can buy a 5-month call option giving you the right to buy 100 shares at a price of $25 per share. If you buy this option for $310.25 and Johnson’s stock price actually rises to $45, what would your pre-tax net profit be? ▸ –$310.25 ▸ $1,689.75 ▸ $1,774.24 ▸ $1,862.95 Title: Re: Suppose you believe that Johnson Companys stock price is going to increase from its current level of ... Post by: tkane127 on Aug 26, 2023 Content hidden
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