Answer to Question #127672 in Finance for hoololeni

Question #127672

Suppose that the stock of the company CFAA is currently trading on April 15 at a price of $70. A call option with a strike price of $70 and an expiration date on October 15 is trading at $4. What is your profit if the stock price at expiration date is $80? Remember that each option contract is for 100 shares.


1
Expert's answer
2020-07-28T10:49:39-0400


Profit = share price at expiration date - current share price - contract value=80-70-4=6



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