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Suppose we have a call option on a stock with the following details: strike price $50,...

Suppose we have a call option on a stock with the following details: strike price $50, current stock price $50, call option premium $5. If we buy the call option, calculate the resulting holding period return for the following future stock prices on the expiry date of the option:

Future stock price at option expiry                                          Return on call option

$45

$50

$55

$60

$70

$80

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jeff jeffy answered 1 year ago
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