On october 31 the following options on apparel group stock


On October 31, the following options on Apparel Group stock, all expiring in December the same year, sold for the following prices:

Options        Exercise Price     Option Premium

Call             $45                   $7.90

Put             $50                   $1.25

Call             $55                   $1.70

You buy one call (one contract is 100 shares) with $45 exercise price, buy two puts with $50 exercise price, sell one call with $55 exercise price.

What is your net profit (loss) if Apollo Group stock price is $48 at expiration?

Solution Preview :

Prepared by a verified Expert
Finance Basics: On october 31 the following options on apparel group stock
Reference No:- TGS02506195

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)