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Question
The spot price of the market index is $900. The annual rate of interest on treasuries is 2.4% (0.2% per month). After 3 months the market index is priced at $920. An investor has a long call option on the index at a strike price of $930. What profit or loss will the writer of the call option earn if the option premium is $2.00?A) $2.00 gain
B) $2.00 loss
C) $2.01 gain
D) $2.01 loss
Answer
This answer is hidden. It contains 1 characters.
Related questions
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