Suppose you purchase a call option on Asset XYZ that has an exercise price of $50. The option price is $2 per share. Suppose that on the expiration date, the current price is $50. What is your net profit or loss per share?

Question

Quizplus · Accepted Answer

Since the current price at expiration ($50) is equal to the exercise price, exercising the option wouldn't yield any profit. The net loss is the cost of the option, which is $2 per share.

Suppose You Purchase a Call Option on Asset XYZ That