Question: You simultaneously purchase an underlying priced at $77 and write a call option on it with an exercise price of $80 and selling at $6.

You simultaneously purchase an underlying priced at $77 and write a call option on it with an exercise price of $80 and selling at $6. What is the total profit (or loss), if the underlying stock price becomes $100? [Using positive number for profit, and negative number for loss]

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!