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Title: Suppose you believe that Smithson Inc.s stock price is going to increase from its current level of ... Post by: warrenrulez on Aug 26, 2023 Suppose you believe that Smithson Inc.’s stock price is going to increase from its current level of $50 sometime during the next 5 months. For $410.25 you can buy a 5-month call option giving you the right to buy 100 shares at a price of $55 per share. If you buy this option for $410.25 and Smithson’s stock price actually drops to $45, what would your pre-tax net profit be? ▸ –$410.25 ▸ –$1,410.25 ▸ $1,410.25 ▸ $1,862.95 Title: Re: Suppose you believe that Smithson Inc.s stock price is going to increase from its current level of ... Post by: dhk72 on Aug 26, 2023 Content hidden
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