Calculate the Leverage from Holding a Call Option with a Closing

question 74

Short Answer

Calculate the leverage from holding a call option with a closing price of $3 on February 18 and a closing price of $6.5 on April 6. The stock price on February 18 was $22 and closed at $27 on April 6.

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Definitions:

Social Exchange

A theory that suggests human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.

Storge Style

A style of love often characterized by deep affection and friendship that develops over time.

Altruistic

Showing selfless concern for the well-being of others; the opposite of selfish.

Self-sacrificing

The act of giving up one's own needs, desires, or wellbeing for the benefit of others or for a greater cause.