Suppose a call option has an exercise price of 35 and the, Ask an Expert

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Suppose a call option has an exercise price of $35, and the underlying stock is trading for $30. The cost of the option is $2, and the option expires in one month. A month later, the option stock is trading for $41. Assuming the investor exercises the option at maturity, what is the investor's full profit per share on the option contract?

a. $4; b. $5; c. $6; d. $9

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91266861

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