Finance 34.Assume that an investor purchased 1 share of XYZ Ltd last year for $36.86 and this year, with the share price at $43.32, writes a three-month call option with an exercise price of $50. If the writer receives a premium of $2.13 what is the total profit or loss made by the investor? Give your answer to two decimal places

Finance 34.Assume that an investor purchased 1 share of XYZ Ltd last year for $36.86 and this year, with the share price at $43.32, writes a three-month call option with an exercise price of $50. If the writer receives a premium of $2.13 what is the total profit or loss made by the investor? Give your answer to two decimal places

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

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