An investor purchased a call option that allows her to purchase 100 shares of Dell Computer common stock for $45 per share any time during the next six months.The price she paid for the option was $2.50 per share,or $250 total,and the current market price of Dell's stock is $42.50.If the price of Dell increases to $44.50 and the investor decides to exercise it,what will be the gain or loss that results from the option position that was held? Ignore taxes and commissions.
A) $200 gain
B) $300 loss
C) $50 loss
D) $450 loss
E) None of the above.

Question

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The Answer of An investor purchased a call option that allows her to purchase 100 shares of Dell Computer common stock for $45 per share any time during the next six months.The price she paid for the option was $2.50 per share,or $250 total,and the current market price of Dell's stock is $42.50.If the price of Dell increases to $44.50 and the investor decides to exercise it,what will be the gain or loss that results from the option position that was held? Ignore taxes and commissions.
A) $200 gain
B) $300 loss
C) $50 loss
D) $450 loss
E) None of the above.

An Investor Purchased a Call Option That Allows Her to Purchase