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You purchased thirteen Bluewater call option contracts with a strike price of $45 when the option was quoted at $1.68. T...

You purchased thirteen Bluewater call option contracts with a strike price of $45 when the option was quoted at $1.68. The option expires today when the value of Bluewater stock is $47.20. Ignoring trading costs and taxes, what is the total profit or loss on your investment? $0 $2,010 $1,114 $676 $468

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Answer #1

Net Profit = (Stock Price - Strike Price) - Premium Paid

Net Profit = [[(47.20 - 45) - 1.68]13]100

Net Profit = $676

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