1 allie sells a call option on microsoft stock for 6 the, Ask an Expert

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1. Allie sells a call option on Microsoft stock for $6. The exercise price is $30. When the option was purchased, the price of Microsoft was $31, and at the maturity of the option the stock is worth $35. What is Allie's profit per share.

2. Casey buys a call option on Ford stock for $2. The exercise price is $20 at the time of the purchase, the price of Ford $17. At what stock price will Casey break even on the option?

3. What would the book value per share of Ron's Rodents Co.be if the frm had 50,000 shares of common stock outstanding?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92854864

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