Question
A stock is trading for $78 per share and the July 80 call is trading for...
A
stock is trading for $78 per share and the July 80 call is trading
for $1.25. What is the profit or loss in dollars and in percentage
for both the stock and the option if the stock increases to $85 per
share at July expiration (call will trade at its intrinsic value at
expiration)? What is the loss in price and percentage for the stock
and the option if the stock falls to $70 per share at July
expiration?
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