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A speculator buys a call option for $1.5, with an exercise price of $20. The stock...

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Finance

A speculator buys a call option for $1.5, with an exerciseprice of $20. The stock is currently priced at $19, and rises to$26 on the expiration date. The speculator will exercise the optionon the expiration date (if it is feasible to do so). What is thespeculator's profit per unit?

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Transcribed Image Text

A speculator buys a call option for $1.5, with an exerciseprice of $20. The stock is currently priced at $19, and rises to$26 on the expiration date. The speculator will exercise the optionon the expiration date (if it is feasible to do so). What is thespeculator's profit per unit?

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