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Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $70, and the premium is $4. If, at expiration, the stock is selling for $77 per share, what are your call options worth?

Respuesta :

Answer:

$5,600

Explanation:

The computation of the call options worth is shown below:

= (Stock selling price - strike price) × size × number of contracts purchased

= ($77 per share - $70 per share) × 100 × 8 call contracts

= $7 per share × 100 × 8 call contracts

= $5,600

We assume the size is 100

All other information which is given is not relevant. Hence, ignored it

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