Solved: 3 month call option is the right to buy stock at 20, Risk Management

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3 month call option is the right to buy stock at 20

3 month call option is the right to buy stock at $20. Currently it sells for $22 and the call is selling for $5. Considering buying 100 shares ($2200) or one call ($500).

a. If stock rises to $29 within 3 months, what are P/L of each? What is % gain or loss of each?

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Risk Management: 3 month call option is the right to buy stock at 20

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Risk Management: 3 month call option is the right to buy stock at 20

Reference No:- TGS02278703

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