Warner Motors 's stock is trading at $20 a share Call options that expire in three months with a strike price of $20 sell for $1 50 Which of the following will occur if the stock price increases 10 , to $22 a share ...

Warner Motors's stock is trading at $20 a share. Call options that expire in three months with

Question:

Warner Motors's stock is trading at $20 a share. Call options that expire in three months with a of $20 sell for $1.50. Which of the following will occur if the stock price increases 10%, to $22 a share?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.