Stock in Bunyan Brewery is currently priced at $20 per share. A call option with a $20 strike and 60 days to maturity is quoted at $2. Compare the percentage gains and losses from a $2,000 investment in the stock versus the option in 60 days for stock prices of $26, $20, and $18.

Answer rating: 100% (QA)

When stock price is 26 at maturity The call options are worth 6 each Each optio... View the full answer