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mantparn mantparn
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7 years ago
An investor is considering buying 500 shares of ABC Company at $32 per share. Analysts agree that the firm's stock price may increase to $45 per share in the next four months. As an alternative, the investor could purchase a 120-day call option at a striking price of $30 for $5,000. What profit would the investor realize if the stock price increased to $42 per share?
A) $0
B) $1,000
C) $4,000
D) $6,000
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
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UlainUlain
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7 years ago
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mantparn Author
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#2
7 years ago
Thanks for the assistance, I've marked your post as best answer
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#3
4 years ago
asas
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#4
3 years ago
Thankyou
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