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Contracts to speculate on price movements of bt stock

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Question: Ollie Lloyd, a UK resident, bought five option contracts to speculate on price movements of BT stock. Each contract is worth 1,000 shares of the stock and costs £0.35 (Pound sterling), so he paid £1,750 in total. After five months, he sold the five contracts for a total of £2,250. Assuming he is in the basic rate tax bracket of 20% and capital gains are taxed at this rate in the UK, what are his pretax and after-tax HPRs on this transaction?

Reference no: EM131627163

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