Hedging Inc. buys 50 call options on Jabba stock. The strike price is $63 and the option premium is $2.15. Hedging Inc. exercises the options at maturity, when the stock price is $75. What is net profit in dollars for Hedging Inc.?
net profit = number of option*(spot price-strike price-option cost)
=50*(75-63-2.15)
=
| 492.5 |
Hedging Inc. buys 50 call options on Jabba stock. The strike price is $63 and the...
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