Question: You write a call option contract on ABC stock, with exercise price of $ 7 8 and call premium of $ 6 . 2 8

You write a call option contract on ABC stock, with exercise price of $78 and call premium of $6.28. You also buy 100 shares of ABC stock at a price of $80 per share. Calculate the total cost of your strategy.
Group of answer choices
$628
$8,000
$8,628
$7,372

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!