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You Purchased a Call Option for $3

Question 87

Multiple Choice

You purchased a call option for $3.45 17 days ago.The call has a strike price of $45, and the stock is now trading for $51.If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?


A) 173.9%, -100%
B) 73.9%, -100%
C) 57.5%, -173.9%
D) 73.9%, -57.5%

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