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Author Question: Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option ... (Read 432 times)

appyboo

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Question 1

Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option currently trades for a premium of $13.75. Prestige Worldwide shares are currently trading for $565. What is the break-even price for a long call position?
◦ $565
◦ $575
◦ $578.75
◦ $588.75

Question 2

Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option currently trades for a premium of $13.75. Prestige Worldwide shares are currently trading for $565. What is the maximum profit that a call writer can earn on such an option?
◦ $13.75
◦ $551.25
◦ $575.00
◦ Unlimited upside


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Marked as best answer by appyboo on Apr 25, 2021

dpost18

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appyboo

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


Jsherida

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Reply 3 on: Yesterday
:D TYSM

 

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