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Jorge Has Purchased Call Options on 1000 Shares of Amazon

question 46

Essay

Jorge has purchased call options on 1000 shares of Amazon with a strike 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 share is $280 at expiration.
b.Compute Jorge's profit or loss if the market value of Amazon's share is $260 at expiration.
c.Compute Jorge's profit or loss if the market value of Amazon's share is $272 at expiration.


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