Question: Please answer the question based on per share price, per share premium etc. Also, this question is asking from the buyer of the call options
Please answer the question based on per share price, per share premium etc.
Also, this question is asking from the buyer of the call options point of view.
- The market price for Boeing Company (Ticker: BA) was $241.16. when Mark bought a call option today. The call premium is $1.47 and the exercise price is $250. The option will be expired on June 18, 2021.
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- Draw the contingency graph for Mark. Label each point/interaction on the graph.
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- What is the break-even point for Mark?
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- What are Marks maximum profit and maximum loss?
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- Show the profit/loss for Mark if, at the expiration date, the BA price is (1) $210, (2) $251, and (3) $300.
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