1 suppose you purchase a call option on 100 shares of xyz, Ask an Expert

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1. Suppose you purchase a call option on 100 shares of XYZ stock for $6 per share. The option has an exercise price of $40 per share and the stock is currently selling for $50 per share. What is your total profit or loss on the option investment?

2. Suppose the option in the previous question is a put rather than a call. All of the values stated are the same for the put option. What is your total profit or loss on the option investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91546435

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