Solution-What was the maximum possible loss

What was the maximum possible loss

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Reference no: EM132412366

On December 3, Alec bought 5 XYZ December 60 calls. He paid $20 per contract. At the time of his option purchase, XYZ was trading at 53.27. Alec closed his entire option position 5 minutes prior to its expiration. Alec's broker does not charge him commissions.

If XYZ's price at 3:55 p.m. EST on the 3 rd Friday of December is 59.27, what amounts most likely represents Alec's total profit from his XYZ call position?

What was the maximum possible loss on Alec's long option position?

What was the maximum possible gain on Alec's long option position?

If the price of XYZ was 62.50 when Alec closed his position, what would his total profit have been?

Reference no: EM132412366

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What was the maximum possible loss

Reference no: EM132412366

Reference no: EM132412366

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