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Reference no: EM133060118

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Today, a trader opens a new option position by buying total 6 October Apple call option contracts with a strike price of $500 and pays a premium of $53.45. Apple common stock is trading at $535.40 per share. One week later, the trader completely offsets this position at an option price of $54. All prices are per share. The underlying asset is 100 shares.

What is the trader's profit or loss, not taking into account trading expenses?

  • Do not round values at intermediate steps in your calculations.
  • Enter your answer in dollars and cents, but omit the $ symbol and commas.
  • Round to the nearest penny.
  • Example: enter  $1,234.56 as 1234.56 in the answer box.
  • If a loss, put a minus sign in front of the number.

Reference no: EM133060118

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