Determining the return to the speculator


Problem:

A speculator purchased a call option with an exercise price of $31 for a premium of $4. The option was exercised a few days later when the stock price was $34.

Required:

Question: What was the return to the speculator?

Note: Show supporting computations in good form.

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Accounting Basics: Determining the return to the speculator
Reference No:- TGS0884938

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