Apple call options strike $330 is trading at $10 today. Upon expiry, at what price of...

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Question

business finance

Answer 1

Answer #1

rate positively ..


	Given that -

	Strike price =	330
	Call premium =	10

ans 1	Call will be exercised if the spot price is greater than exercise price.
	therefore price above 330 will result into exercising the call option

ans 2	call profit = (Spot price - Exercise price)- Call premium

	Price at which one will have profit = 330+10 = 340 or above

	therefore at any price range above 340 firm will able to make profit.

Answer 2

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