An investor purchases a call option with a strike price of $118 and a premium of $1.21. What is the profit or loss of the option if the stock price at expiration is $102.12? Record your answer in terms of profit or loss per share and to two decimal places. A positive answer represents a profit and a negative answer represents a loss.

An investor purchases a call option with a strike price of $118 and a premium of $1.21. What is the profit or loss of the option if the stock price at expiration is $102.12?

Solution

=-1.21+max(102.12-118,0)

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