Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: karateprodigy on Apr 25, 2021
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Shares in Globex Corp. are trading today for $26. Call options on Globex shares, which expire in 6 months with a strike price of $25, are trading for $3.60. What is the payoff to a call option writer, at maturity, if the stock price is $27? Assume that there is one share per contract.
◦ -$3.60
◦ -$2.00
◦ -$1.60
◦ $1.60
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-$2.00