Suppose I pay $10 for the right to buy a share some time. The actual subscription price

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Suppose I pay $10 for the right to buy a share some time. The actual subscription price of the share- what I pay beyond the right is $30. I notice the market price jumps suddenly to $55. Do I have an "instant profit,' and if so how much is it?

Include calculations with any explanations involved.

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Sep 03, 2023 08:58 AM

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Suppose I pay $10 for the right to buy a share some time. The actual subscription price

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Yes you have an instant profit in this scenario To calculate the instant profit we ... View the full answer

Income Tax Fundamentals 2013

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