Grant purchased one call on xyz stock at an exercise price, Ask an Expert

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Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock when Grant purchased the call was $24 a share. XYZ is currently priced at $30 a share. Grant paid $120 to buy the call. How much profit will Grant make if he exercises the option today and then sells the shares? Ignore all transaction-related costs. Show work.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91602620

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