What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option with an exercise price of $130 if Apple closed on the expiration date at $120? Assume the option premium was $3.00. Multiple Choice $0 $7.00 gain $3.00 loss $3.00 gain

Question

12-09-2022
Business

contestada

What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option with an exercise price of $130 if Apple closed on the expiration date at $120? Assume the option premium was $3.00. Multiple Choice $0 $7.00 gain $3.00 loss $3.00 gain

Respuesta :

Otras preguntas

What was the impact of increased crop yields? A. The general population rose dramatically. B. New farming methods developed at a rapid rate. C. Farmers were abl

Why is themost farming in ancient Egypt and in present day Egypt done along the Nile ?

Multiples comunes de 6 y 9

Pros and cons of the stamp act

Cuba is one of the world's leading producers of sugarcane. Consequently, sugar is its main export. Why is this a potential problem?

Thoreau believes that people should work because A. God said so in the Bible. B. it will give them time to think about important things. C. they love what they

Why was the development of towns economically important? A. The towns became centers of commerce. B. The towns created homes for a variety of guilds. C. The tow

Viruses can only replicate themselves within cells, not outside of a cell. True or False?

In an eight-cell embryo of an organism, the cells of the upper tier are aligned over the cells of the lower tier at a slight angle. Which organism is it likely

Lily estimated a quotient of 120 and found an actual quotient of 83

Parrain Parrain · Answer 1 · 2022-09-13T14:33:24+02:00

Based on the option premium, the exercise price, and the closing price of Apple, the profit or loss would be a loss of $3.00.

What would be the profit or loss?

When a call option is made, the investor will only place a call on the stock if the price of the stock rises.

If the price of the stock falls instead, the investor will not place a call on the stock and so will only lose the premium they paid to get the contract. That premium will be the $3.00.

Find out more on call options at https://brainly.com/question/15571230

#SPJ1