If an investor buys a 100-share call option for $325 with an exercise price of $
ID: 2698297 • Letter: I
Question
If an investor buys a 100-share call option for $325 with an exercise price of $15 and the underlying price per share of the stock at expiration is $13, what is the amount of profit or loss, ignoring brokerage fees? Answer There would be a profit of $525. There would be a loss of $125. There would be a loss of $325. There would be a loss of $525. If an investor buys a 100-share call option for $325 with an exercise price of $15 and the underlying price per share of the stock at expiration is $13, what is the amount of profit or loss, ignoring brokerage fees? There would be a profit of $525. There would be a loss of $125. There would be a loss of $325. There would be a loss of $525. There would be a profit of $525. There would be a loss of $125. There would be a loss of $325. There would be a loss of $525.Explanation / Answer
exrcise price=15