Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: erikka246 on Mar 29, 2022
-
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.
◦ $380
◦ $480
◦ $500
◦ $600
-
$380