Chloe invested $500 by purchasing 50 call options for XYZ stock at $85 per share. At...
Chloe invested $500 by purchasing 50 call options for XYZ stock at $85 per share. At its highest point, the stock reached $ 97 per share. If Chloe had exercised her option at that time, what would her return have been?
A. 500%
B. 970%
C. 120%
D. 20%
E. 83.3%
Homework Answers
Invested Amount = $500
Profit on Call Option = (97 - 85)50 = $600
Rate of Return = 600/500
Rate of Return = 120%
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