FoundationNumeric answer
You own stock bought at and sell the call against it for . At expiry the stock is at . What is your total profit per share?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
Reported in interviews at
More options: fundamentals and arbitrage questions
- You are long a $95 call. The stock settles at $103. What is the payoff, ignoring premium?Foundation
- A stock trades at $50 and the $45 call trades at $7.Foundation
- You buy the $50 put for $3 and the stock settles at $44. What is your profit per share?Foundation
- You sell the $90 put for $2.50.Foundation
- A stock trades at $50. Which of these options is in the money?Foundation
- You buy 5 call contracts at a quoted price of $2.40.Foundation