u purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return? Multiple Choice a.173.9%, −100% b.73.9%, −100% c. 57.5%, −173.9% d.73.9%, −57.5% e.100%, −100
u purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return? Multiple Choice a.173.9%, −100% b.73.9%, −100% c. 57.5%, −173.9% d.73.9%, −57.5% e.100%, −100
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?
Multiple Choice
a.173.9%, −100%
b.73.9%, −100%
c. 57.5%, −173.9%
d.73.9%, −57.5%
e.100%, −100%
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