You buy a stock option with an exercise price of $50. The cost of the option is

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You buy a stock option with an exercise price of $50. The cost of the option is $4. If the stock ends up at $56, indicate whether you have a profit or loss with a call option? With a put option?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 05:36 AM

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You buy a stock option with an exercise price of $50. The cost of the option is

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With a call option you would have a profit of 2 You bought the op...View the full answer

Foundations of Financial Management

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