In: Finance
You purchased a call option on IBM stock 3 months ago for a price (premium) of $1. The option has a 6-month expiration and a strike price of $146. You decided to exercise the option today when IBM stock is trading at $147. This means that _________________
You sold an IBM stock today for $1. | ||
You bought an IBM stock today for $146. | ||
You bought an IBM stock today for $147. | ||
You sold an IBM stock today for $146. |
Call option gives right to purchase at strike price
Here strike price = 146
This means that : You bought an IBM stock today for $146
Answer : You bought an IBM stock today for $146