Assume you are a speculator who purchased a IPE Brent Crude call option contract at an exercise price of $52 by paying a premium of $2. If the price of the underlying asset moves to $ 48 what is your maximum loss or gain ? If the price of the underlying asset moves to $ 56 what is your maximum loss or gain ?
Assume you are a speculator who purchased a IPE Brent Crude call option contract at an exercise price of $52 by paying a premium of $2.
If the price of the underlying asset moves to $ 48 what is your maximum loss or gain ?
If the price of the underlying asset moves to $ 56 what is your maximum loss or gain ?
Call option gives holder an option to purchase the stock. it gives a right but not an obligation to the holder.
Call option will be lapsed, when exercise price is greater than stock price.
Call option will be exercised, when exercise price is less than stock price.
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Exercise price is $52.
Premium paid is $2
Current stock price is $48.
Here, Call option will be lapsed, as exercise price is greater than stock price.
Maximum loss is $2.
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