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1. Return on Stock Options. Chris purchased a call option on a stock for $200. The option gives him the right to purchase the stock at $30 per share until May 1st. On May 1st, the price of the stock is $28 per share. What is Chris' return on the stock option?

2. Return on Stock Options. Teresa purchased a call option on a stock for $250. The option allows her to purchase the stock for $40 per share if she exercises the option by December 31st. On December 15th, the stock rises to $60 per share and Teresa exercises the option. What is Teresa's return?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92055934

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