Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock when Grant purchased the call was $24 a share. XYZ is currently priced at $30 a share
Grant paid $120 to buy the call. How much profit will Grant make if he exercises the option today and then sells the shares? Ignore all transaction-related costs.
A) $380
B) $480
C) $500
D) $600
Answer: A
Business
You might also like to view...
The Norris-LaGuardia Act is a federal statute which stipulates that it is legal for employees to organize
Indicate whether the statement is true or false
Business
The U.S. Constitution divides the power to regulate foreign affairs equally between the federal and state governments
Indicate whether the statement is true or false
Business