An investor pays $3 to buy a call option on MSFT with a strike price of $45, and receives $2 for selling a call option on MSFT with a strike price of $49. The two options have the same expiration date. At expiration, MSFT is selling for $55. What is the investor’s per share profit or loss?

An investor pays $3 to buy a call option on MSFT with a strike price of $45, and receives $2 for selling a call option on MSFT with a strike price of $49. The two options have the same expiration date. At expiration, MSFT is selling for $55. What is the investor’s per share profit or loss?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 1P

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