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Calculate the option profit to the trader

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Reference no: EM132692853

It is March and a trader buys 100 August call options (=1 option contract) with a strike price of $27. The stock price is $27.22 and the option price is $4.15.

At the expiration, the stock price becomes $30.71. Calculate the option profit to the trader.

Reference no: EM132692853

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