Alpha Geek

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    Polytechnic State University Sanluis
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Category > Business & Finance Posted 04 Aug 2017 My Price 5.00

Return on Stock Options. Maryanne paid $300 for a call option on a stock. The option gives

    1. Return on Stock Options. Maryanne paid $300 for a call option on a stock. The option gives her the right to buy the stock for $27 per share until March 1st. On February 15th, the stock price rises to

$32 per share, and Maryanne exercises her option. What is Maryanne’s return from this transaction?

Answers

(8)
Status NEW Posted 04 Aug 2017 02:08 PM My Price 5.00

By -----------ext-----------rac-----------tin-----------g t-----------he -----------inf-----------orm-----------ati-----------on:----------- Ca-----------ll -----------pri-----------ce -----------for----------- a -----------lot----------- = -----------$30-----------0 S-----------tri-----------ke -----------pri-----------ce -----------= $-----------27 -----------Sto-----------ck -----------Pri-----------ce -----------= $-----------32 -----------Pay------------of-----------f f-----------or -----------the----------- ca-----------ll -----------opt-----------ion----------- is----------- pr-----------ofi-----------tab-----------le -----------whe-----------n t-----------he -----------sto-----------ck

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