Call option contracts with strike price

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Reference no: EM131045349

You expected the Ali Baba stock price to rise over the next six months. Now, the current price is $90. To utilize your expectation, you bought 5 call option contracts with strike price of $91 on Ali Baba stock. The call option price is $6 per option. If the stock price ends with $125 in six months and exercised the options, what is the total net profit? (caution: don’t forget the contract size of stock option)

1) 8,000-12,000 profit

2) 5,000-8,000 profit

3)15,000 or more profit

4) 12,000-15,000 profit

Reference no: EM131045349

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