What is the net economic gain or loss on the entire option


An investor is committed to purchasing 100 shares of World Port Management stock in six months. She is worried the stock price will rise significantly over the next six months. The stock is at $45 and she buys a six-month call with a strike of $50 for $250. At expiration the stock is at $49. What is the net economic gain or loss on the entire option portfolio? Show work

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the net economic gain or loss on the entire option
Reference No:- TGS02314413

Expected delivery within 24 Hours