An investor sells a call option with a strike price of $60 and a premium of $2.36. What is the profit or loss of the option if the stock price at expiration is $83.98? 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 sells a call option with a strike price of $60 and a premium of $2.36. What is the profit or loss of the option if the stock price at expiration is $83.98?

 

Solution

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=2.36-MAX(83.98-60,0)

=-$21.62