Jorge Has Purchased Call Options on 1000 Shares of Amazon

question 93

Essay

Jorge has purchased call options on 1000 shares of Amazon stock with a striking price of $270 per share.The option premium was $4.00 per share.
a.Compute Jorge's profit or loss if the market value of Amazon's stock is $280 at expiration.
b.Compute Jorge's profit or loss if the market value of Amazon's stock is $260 at expiration.
c.Compute Jorge's profit or loss if the market value of Amazon's stock is $272 at expiration.

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Definitions:

Exploratory Stage

In Super’s theory, the second life stage in the development of vocational self-concept from about 14 to 24, in which vocational self-concept is tentatively narrowed down, but often career choices are not finalized.

Work Experiences

The accumulation of knowledge, skills, and attitudes obtained from performing tasks and roles in a professional setting.

Attachment Styles

Patterns of bonding that people form with others, affecting the dynamics of interpersonal relationships.

Adult Attachments

This term refers to the emotional bonds formed by adults in intimate relationships, which significantly influence their interpersonal dynamics.