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murzikaleks [220]
2 years ago
7

In early April, an investor buys 1 XYZ Oct 60 call for $9 and sells 1 XYZ Jul 70 call for $4. If the investor buys back the Jul

call for $1 and sells the Oct call for $12, what will the pretax profit or loss be?
Business
1 answer:
goldfiish [28.3K]2 years ago
6 0

Answer:

$600 profit

Explanation:

bought Oct Call at $9 and sold at $12 = $3 profit
sold Jul Call at $4 and bought back at $1 = $3 profit
total profit $6 per option x 100 shares = $600

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