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shepherd shepherd
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8 years ago
A call option is purchased for a premium of $400. The current price of the stock is $42 per share and the exercise price is $44 per share. The option is exercised when the stock is selling for $50 per share. What would be your return on the option if after exercising it, you immediately sold the stock at the market price of $50 per share? Ignore taxes and brokerage commissions.
A) 200%      B) 12%      C) 8%      D) 50%
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Personal Finance

Personal Finance


Edition: 5th
Author:
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tityltityl
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8 years ago
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shepherd Author
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#2
8 years ago
Exactly what I wanted!
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#3
8 years ago
Cool! Remember to mark it solved when you get a chance
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