strike price of $103. The call premium is The recent price per share of Company X is $103 per share. You buy 100 shares at $50. Meanwhile, you sell 100 shares of calls with $1 per share. If Company X closes at $81 per share at the expiration of the call, and you sells all the 100 shares at $81. What would be the total profit or loss from investing in the stock and investing in the option? 3200

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The recent price per share of Company X is $103 per share. You buy 100 shares at $50. Meanwhile, you sell 100 shares of calls with a strike price of $103. The call premium is
$1 per share. If Company X closes at $81 per share at the expiration of the call, and you sells all the 100 shares at $81. What would be the total profit or loss from investing in the
stock and investing in the option?
3200
Transcribed Image Text:The recent price per share of Company X is $103 per share. You buy 100 shares at $50. Meanwhile, you sell 100 shares of calls with a strike price of $103. The call premium is $1 per share. If Company X closes at $81 per share at the expiration of the call, and you sells all the 100 shares at $81. What would be the total profit or loss from investing in the stock and investing in the option? 3200
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