question archive A call option with a strike price of $55
A call option with a strike price of $55
Subject:FinancePrice:2.86 Bought5
A call option with a strike price of $55.50 had a bid price of $1 and an ask price of $1.25. At expiration, the underlying stock is selling for $52.50. If you wrote this call, your profit or loss at expiration would be: +$3 -$3 +$1.75 -$1.75
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ANSWER
A. 3
profit = strike price - market price
Profit = 55.5 -52.5 = 3
