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How much is the realized profit or loss on the transaction

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Question - You write one European Tesla July 330 call option contract (equalling 100 shares) for a premium of $7 shares. You hold the option until the expiration date, when Tesla stock sells for $340 per share.

Required -

a) How much is the realized profit/loss on the transaction?

b) What is the maximum profit that you can realize on this position? Explain your answer!

c) What is biggest loss that you can suffer on this position? Explain your answer!

Reference no: EM132550862

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