Return on Stock Options. Chris purchased a call option on a stock for $301. The option...
Return on Stock Options. Chris purchased a call option on a stock for $301.
The option gives him the right to purchase the stock at $28.66
per share until May 1st. On May 1st, the price of the stock is $26.61
per share. What is Chris' return on the stock option?
(Hint: Ignore transaction costs.)
Chris' return on the stock option is____%.
(Round to the nearest whole percent and include a negative sign when appropriate.)
Homework Answers
We see that the Return from the transaction=(100*MAX(26.61-28.66,0))/301-1=-100.00%
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Return on Stock Options. Chris purchased a call option on a
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