Suppose you buy 50 July 100 call option contracts. Hendreeks stock is selling fo
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Question
Suppose you buy 50 July 100 call option contracts. Hendreeks stock is selling for $106.30 per share on the expiration date. How much is your options investment worth? What if the stock price is $102.20 on the expiration date?
Suppose you buy 50 July 100 call option contracts. Hendreeks stock is selling for $106.30 per share on the expiration date. How much is your options investment worth? What if the stock price is $102.20 on the expiration date?
Suppose you buy 50 July 100 call option contract. Hendreeks stock is selling for $ 106.30 per share on the expiration date. How much is your options investment worth? What if the stock price is $ 102.20 on the expiration date? (Do not round intermediate calculations. Omit the "$" sign in your response.)Explanation / Answer
Option Payoffs at $ 106.30 $315 Option Payoffs at $ 102.20 $110 If Stock is selling at $ 106.30 Call Option Worth: Amount ($) Stock's Selling price = $ 106.30 Less: Strike price = $ 100.00 Profit = $ 6.30 No. of option = 50 Option Worth = $ 315.00 If Stock is selling at $ 102.2 Call Option Worth: Amount ($) Stock's Selling price = $ 102.20 Less: Strike price = $ 100.00 Profit = $ 2.20 No. of option = 50 Option Worth = $ 110.00
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