The stock price at expiry is $78. The strike price for a call is $75. The...
The stock price at expiry is $78. The strike price for a call is $75.
The expiry date is 11/2014
What is the payoff and profit for the investment in a call option
Homework Answers
The pay off on the call option is = $78 - $75
= $3
The profit is = pay off - premium paid
= $3 - premium paid
Since, the premium paid is not given , let us assume it to be zero,
so the profit is $3.
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