Problem 3-7

You purchase 12 call option contracts with a strike price of $50 and a premium of $3.80. Assume the stock price at expiration is $59.12.

1.	What is your dollar profit? (Do not round intermediate calculations. Omit the "$" sign in your response.)

Dollar profit

$

2.	What if the stock price is $45.07? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Omit the "$" sign in your response.)

If the stock price is $45.07, the call is (Click to select)in-the-moneyworthless, so the dollar return is $ .

References