Companyrsquos current price is 225 john believes that


Company’s current price is 22.5. John believes that Company's stock price is going to increase during the next 10 months. A 10-month call option giving the right to buy 100 shares with a strike price of $56 is available. For each option (to buy each share), the option price or premium is $2.16. If John buys this option, and stock price actually rises to $95, what would be his total pre-tax net profit?

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Financial Management: Companyrsquos current price is 225 john believes that
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