Question: You just bought a call option contract on MSFT with 1 month to expiration, with a strike price of $40, at $4 per share. If

You just bought a call option contract on MSFT with 1 month to expiration, with a strike price of $40, at $4 per share. If at expiration, MSFT is trading at $46, what is your net profit from this position?

Ignore trading fees. Note that stock option contracts come in units of 100 shares each.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!