Assume you just bought 200 call contracts (eachcontract contains 100 shares) on shares of Company A. The options can be exercised in one year's time at the strike price of $40. You paid $0.40 per option. The shares of the company are currently selling at $36per share. If the company's share price rises to $43in one year's time, what will be your net gain from the call options?

Answer rating: 100% (QA)

To calculate the net gain from the call options we first need to determine the total cost of purchas... View the full answer