Solution-What is the net profit or loss of her investment

What is the net profit or loss of her investment

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Reference no: EM131769030

Elisa would like to participate in the limited upside of YZ, Inc. As an option writer, she wrote (or sold) five YZ, Inc. call contracts with an exercise price of $6 expiring in 3 months. The premium is $2 each. If the stock price at expiration is $7, the buyer exercises his/her contracts. What is the net profit or loss of her investment, assuming that there are no transaction costs?

Reference no: EM131769030

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What is the net profit or loss of her investment

Reference no: EM131769030

Reference no: EM131769030

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