What is the speculators profit per unit

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Reference no: EM13950126

A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55 on the expiration date. The speculator will exercise the option on the expiration date (if it is feasible to do so). What is the speculator's profit per unit?

a. $1

b. $5

c. $2

d. −$1

e. −$2

Reference no: EM13950126

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