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Author Question: Bob's DJIA Index call option had a strike price of 261. When he exercised the option, the Dow was at 26,350. (Read 231 times)

Adc3669

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Question 1

Anthony is confident that shares of SolarTech will greatly increase in value, but thinks that it may be a year or more before that happens.  He should buy
◦ ETF calls.
◦ LEAP puts.
◦ LEAP calls.
◦ Index calls.

Question 2

Bob's DJIA Index call option had a strike price of 261.  When he exercised the option, the Dow was at 26,350.
◦ Bob received $2,500 from the writer of the contract.
◦ Bob paid $250 to the writer of the contract.
◦ Bob received $250 from the writer of the contract.
◦ Bob paid $2,500 to the writer of the contract.


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Marked as best answer by Adc3669 on Mar 29, 2022

sin

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