You expected the ali baba stock price to rise over the next


You expected the Ali Baba stock price to rise over the next six months. Now, the current price is $90. To utilize your expectation, you bought 5 call option contracts with strike price of $91 on Ali Baba stock. The call option price is $6 per option. If the stock price ends with $125 in six months and exercised the options, what is the total net profit? (caution: don’t forget the contract size of stock option)

1) 8,000-12,000 profit

2) 5,000-8,000 profit

3)15,000 or more profit

4) 12,000-15,000 profit

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Financial Management: You expected the ali baba stock price to rise over the next
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