Question: A 5-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased for $505. Assuming

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A 5-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased for $505. Assuming that the market price of Home Depot stock rises to $65.77 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? The profit this option would generate over the 5-month holding period is $ (Round to the nearest cent.)

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Handbook Of The Economics Of Finance Corporate Finance Volume 1A 1st Edition by George M. Constantinides, M. Harris, Rene M. Stulz

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