What would be your profit-stock price increases

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Reference no: EM131617164

Pant's stock currently sells for $40 per share and you believe it will increase over the next five months. For $161 you could purchase one call option (the right to purchase one hundred shares of Pant stock) that expires in five months and has a strike price of $55 per share.

What would be your profit (or loss) if Pant's stock price increases to $57?

Your profit (loss) would be $

Reference no: EM131617164

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