Question: You write a call option on a stock for a premium of $5. The exercise price is $1. What is the option's profit or loss

You write a call option on a stock for a premium

You write a call option on a stock for a premium of $5. The exercise price is $1. What is the option's profit or loss if just prior to expiration the stock price is $12? a. $0 b. ($6) c. $6 d. $11 e. $5

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!

Which of the following values comes closest to the payback of a project that requires an initial investment of $34, produces cash flows of $12 for 5 consecutive years beginning at the end of year 1,...

You write a call option on a stock for a premium of $5. The exercise price is $1. What is the options profit or loss if just prior to expiration the stock price is $12? a. $11 b. $5 c. ($6) d. $0 e....

QUESTION 20 ooo ooo You write a call option on a stock for a premium of $5. The exercise price is $11. What is the option's profit or loss if just prior to expiration the stock price is $16? a. $11...

You write a call option on a stock for a premium of $5 . The exercise price is $11 . What is the option's profit or loss if just prior to expiration the stock price is $6 ? A. (56 ) B . SO C. $5 D....

You write a call option on a stock for a premium of $6. The exercise price is $11. What is the options profit or loss if just prior to expiration the stock price is $6? a. $5 b. $0 c. ($6) d. $6 e....

You write a call option on a stock for a premium of $1.00. The exercise price is $11.75. What is the option's profit or loss if just prior to expiration the stock price is $11.25? a. $0.00 b. $1.00...

rou buy a call option on a stock for a premium of $5. The exercise price is $10. What is the option's profit or loss if just prior to expiration the stock price is $25?...

a. You write a put option on a stock for a premium of $0.25. The exercise price is $100. What is the option's profit or loss if just prior to expiration the stock price is $101? b. Suppose that you...

1. You write a put option on a stock for a premium of $1. The exercise price is $6.50. What is the options profit or loss if just prior to expiration the stock price is $6.00? a. $0.50 b. $1.00 c....

Discuss the common points of control in eukaryotic gene regulation.

b. Write the definition of the class Tests such that an object of this class can store a student's first name, last name, five test scores, average tests score, and grade. (Use an array to store the...

The rate charged on a Home Equity Loan is almost always: A . tied to the APR of the mortgage on the property being used as collateral B . the same as that of other loans based on collateral other...

3 . Are there any specific industries or job roles where the intersection of FLSA and salary surveys poses unique challenges or considerations? How can organizations address these challenges...

Did you use active, concrete, short sentences and paragraphs that provide common words? [E]

Did you base your writing on credible research and secondary evidence?

Did you include all dates, times, and locations for event fact sheets? [yes or no]