You purchased a call option for $2.50 two weeks ago. The call has a strike price of

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You purchased a call option for $2.50 two weeks ago. The call has a strike price of $65 and the stock is now trading for 68.05. If you exercise the call today.

What will be your holding period return and effective annual return?

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Jun 17, 2023 09:45 AM

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You purchased a call option for $2.50 two weeks ago. The call has a strike price of

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To calculate the holding period return we need to determine the initial investment and the fi... View the full answer

Fundamentals Of Corporate Finance

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