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Question
An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells a call on the same security with an exercise price of $60 for $1.40. At expiration, 3 months later, the stock price is $56.75. All other things being equal and given an annual interest rate of 4.0%, what is the net profit or loss to the investor?A) $1.21 loss
B) $1.50 loss
C) $0.54 gain
D) $1.65 gain
Answer
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Related questions
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