Derivatives

CFA Level 2 · 5 questions

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Question 1Easy

An investor purchases a call option with a strike price of 50 when the underlying stock is trading at 48. The option premium paid is 3. At expiration, the stock price is 55. What is the investor's profit or loss?

A.Loss of 3B.Profit of 2C.Profit of 5D.Loss of 5

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