A speculator buys a call option for 3 with an exercise, Ask an Expert

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A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55 on the expiration date. The speculator will exercise the option on the expiration date (if it is feasible to do so). What is the speculator's profit per unit?

a. $1

b. $5

c. $2

d. −$1

e. −$2

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91620967

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