Series 7 - General Securities Representative Exam
ABC stock is trading at $40. A trader buys the $45 June call for $2.00. At expiration the stock is at $48.00. Exclusive of fees and commission, what is the trader's profit or loss?
The trader outlaid $200 in capital to buy the 45 call. At $48 at expiration, the call is worth $3.00 ($300) yielding a profit of $100