Suppose you believe that Apple's stock price is going to increase from its current level...
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Suppose you believe that Apple's stock price is going to increase from its current level of $ 60.30 sometime during the next 5 months. For $ 359.97 you could buy a 5-month call option giving you the right to buy 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 359.97 and Apple's stock price actually changed to $ 88.07 at the end of 5 months, and after behaving economically rationally on your decision to exercise the option, your net profit (or loss) would be ______? Show your answer to the nearest .01. Do not use $ or + sign in your answer. However, use a - sign if you lose money on the contract. Your Answer: Question 18 options: Answer
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