A Trader Buys 100 European Call Options I

question 4

Short Answer

A trader buys 100 European call options i.e. one contract) with a strike price of $20 and a time to maturity of one year. The cost of each option is $2. The price of the underlying asset proves to be $25 in one year. What is the trader's gain or loss? Show a dollar amount and indicate whether it is a gain or a loss. _ _ _ _ _ _ _ _ _ _

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Definitions:

Job Vacancy

An unoccupied employment position within an organization that is actively looking for someone to hire.

Realistic Job Previews

Pre-employment informational practices that give potential employees a balanced view of both the positive and negative aspects of a job, enhancing match quality and reducing turnover.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance, attitude, and motivation.

Reduce Turnover

Strategies and practices aimed at decreasing the rate at which employees leave a company, thereby maintaining a stable workforce.