Complete the option position

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Back in October you bought an American-style call option on the shares of Activision Blizzard (ATVI) with an expiry in April and a strike price of $45 at a premium of $11. At the time, ATVI shares were trading for $49 and you were certain the stock price would rise after the release of the new edition of their top-selling title, Call of Duty. The new version of the game was just released. You got one of the first copies, played it and didn't like it. You think sales will be weak. The stock is trading at $59 (April 45 Calls at a premium of $16) but you are pretty sure that both will fall as more gamers try the new game. What is your profit (per share) if you complete the option position today? (Today is prior to the April expiration date.)

Reference no: EM132742470

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