A three-month call option on 100 shares of ThyssenKrupp stock is selling for 150. The strike price
Question:
A three-month call option on 100 shares of ThyssenKrupp stock is selling for €150. The strike price for the option is :30, while the current stock price is € 26.30 per share. Ignoring brokerage fees, what price must the stock achieve to just cover the expense of the option? If the stock price rises to € 35, what will the net profit on the option contract be?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Collins Omondi
I have been an academic and content writer for at least 6 years, working on different academic fields including accounting, political science, technology, law, and nursing in addition to those earlier listed under my education background.
I have a Bachelor’s degree in Commerce (Accounting option), and vast knowledge in various academic fields Finance, Economics, Marketing, Management, Social Science, Women and Gender, Business law, and Statistics among others.
4+ Reviews
16+ Question Solved
Related Book For 
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
Question Posted:
