Suppose you short-sell a stock (which pays no dividends) for $67 and buy a $65-strike call option for $16.86. Assuming the effective annual interest rate is 9%, what is the profit on your position if the stock is worth $48.24 when the option expires?

Answer rating: 100% (QA)

When you shortsell a stock you borrow shares from someone and sell them in the market hoping to buy ... View the full answer