Suppose you purchased two call option contracts (100 shares per contract) with $15 strike price at...

Suppose you purchased two call option contracts (100 shares per contract) with $15 strike price at a quoted price of $0.08 premium/share. What is your total profit on this investment if the price is $14.80 on the option expiration date?

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Expert Solution

Total Profit=Number of shares*[price of share-Strike price-premium]

=200*[14.8-15-0.08]

=200*-0.28

=-$56.0

The Loss=-$56.0

jeff jeffy answered 2 years ago

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