Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?
A)$200
B)$400
C)$600
D)cannot be determined

Question

Quizplus · Accepted Answer

cannot be determined. Since Bubba has not yet sold the stock, a profit cannot be determined on the stock. He has a $400 profit on the option.

Bubba Purchases 100 Shares of XYZ at 78 And, on the Same