A 6​-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased

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answerhappygod
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A 6​-month call option contract on 100 shares of Home Depot common stock with a strike price of $50.00 can be purchased

Post by answerhappygod »

A 6​-month call option contract on 100 shares of Home
Depot common stock with a strike price of $50.00 can be
purchased for $500. Assuming that the market price of
Home Depot stock rises to $65.00 per share by the
expiration date of the​ option, what is the
call​ holder's profit? What is the holding
period​ return?
Part 1
The profit this option would generate over
the 6​-monthholding period is_________
​(Round to the nearest​ cent.)
Part 2
The 6​-month holding period return is_________
​(Round to the nearest whole​ percent.)
Part 3
The annual holding period return is_________
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