Essay
If a call option is purchased at a premium of $200 with the current price of the stock at $25 per share and an exercise price of $28 per share,to what price would the stock need to increase to exercise the option and sell the stock to realize a gain of 250 percent on the option? Ignore taxes and brokerage commissions.
(a)$35
(b)$62.50
(c)$70
(d)$100
Correct Answer:
Verified
Correct Answer:
Verified
Q11: If you anticipate strong economic market conditions,
Q14: Individuals in an early stage of their
Q28: Asset allocation is<br>A) a personal and a
Q40: The purchasing of stocks in different industries,
Q46: In reality, many stocks are influenced by
Q51: The price at which an option allows
Q71: Diversification is especially beneficial during periods where
Q80: A call option is purchased for a
Q90: The more _ the returns of individual
Q103: The more volatile the returns of individual