Problema speculator purchased a call option with an, Ask an Expert

Accounting

Problem:

A speculator purchased a call option with an exercise price of $31 for a premium of $4. The option was exercised a few days later when the stock price was $34.

Required:

Question: What was the return to the speculator?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166919

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