Solution for QID #3372: Consider a principle-protected note involving a $1000 princi | StudyHelpMe

Consider a principle-protected note  involving a $1000 principal-value zero-coupon bond with an implied continuously-compounded interest rate of 5%. One component of the position is a call option with a strike price of $40, which was acquired when the stock was selling at $38 per share. If at expiration the stock is selling for $37, what is the gain from this position in dollars?  a. $49 b. $300 c. $50 d. $0 e. $251