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Aspector buys a cal option for with an exercice of 550. The stock currently priced a n d to 555 on the The speculation will e
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Answer #1

Here the information given is as below,

✓ Excercised price = $ 50

✓ Current price = $ 49

✓ Price on expiration price = $ 55

✓ Premium for call option = $ 3

So, the profit per unit of the speculator will be ...... $ 2.

As he need to pay $ 50 of excercise price as well as premium for call option $ 3 and price of stock on expiration date is $ 55. So, $ 55 - $50 - $ 3 = $ 2.

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