You have purchased a call option contract on Dash common stock. The option has an...
50.1K
Verified Solution
Link Copied!
Question
Accounting
You have purchased a call option contract on Dash common stock. The option has an exercise price of $64.00 and Dashs stock currently trades at $60.00. The option premium is quoted at $5.00.
a. Calculate your net profit on the option contract if Dashs stock price rises to $72.00 and you exercise the option.
b. Calculate your net profit on the option contract if Dashs stock price rises to $67.00 and you exercise the option.
c-1. If the stock price is $65.00, what would be the gain or loss if you exercise, and if you do not exercise the option.
c-2. Based on your answers above would it be more profitable to exercise the option or not exercise the option?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.