if you purchase 10 call contracts with strike price of $100 and a premium of $15 per share, what would your net dollar return be if the price rose to $125?
a) $25,000
b) $15,000
c) $12,500
d) $10,000
Profit on Call Option = Max(0, Stock Price - Strike Price) - Premium Paid
Profit on 1 call option = (125 - 100 - 15)(100) = $1,000
Profit on 10 call options = 10(1,000)
Profit on 10 call options = $10,000
if you purchase 10 call contracts with strike price of $100 and a premium of $15...