What is the option buyer's total profit or loss per share if a call option is purchased for a $5 premium, has a $50 exercise price, and the stock is valued at $53 at expiration?
A) -$5
B) -$2
C) $3
D)$8

Name: What is the option buyer's total profit or loss per share if a call option is purchased for a $5 premium, has a $50 exercise price, and the stock is valued at $53 at expiration? A) -$5 B) -$2 C) $3 D)$8
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Question

Quizplus · Accepted Answer

Profit = $53 - 5 - 50 = -$2

What Is the Option Buyer's Total Profit or Loss Per