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elf_fu elf_fu
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6 years ago
An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells a call on the same security with an exercise price of $60 for $1.40. At expiration, 3 months later, the stock price is $56.75. All other things being equal and given an annual interest rate of 4.0%, what is the net profit or loss to the investor?
A) $1.21 loss
B) $1.50 loss
C) $0.54 gain
D) $1.65 gain
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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6 years ago
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elf_fu Author
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#2
6 years ago
Thank you Heavy Heart
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#3
3 years ago
Thank you
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#4
3 years ago
thank you
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