Assume that an investor buysa three-month call option on IBM shares with an exercise price of $45,

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Assume that an investor buysa three-month call option on IBM shares with an exercise price of $45, and pays apremium of $2.85 per share. Each option is for5 shares. If 1 month later the share price of IBM is$52.91what isthe (intrinsic) profit or loss madeby the investor?

Posted Date: May 18, 2024 07:13 AM

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Assume that an investor buysa three-month call option on IBM shares with an exercise price of $45,

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