You buy three contracts of a call option at an exercise price of $50. You exercise this option four months after you buy the option when the market price reaches 8% above the exercise price. The option premium per share is $1.50. The annualized rate of return before tax is?

Answer rating: 100% (QA)

To calculate the annualized rate of return before tax on this call option investment we need to take into account the following factors Option premium ... View the full answer