Profit on Option You have purchased a call option contract on Dash common stock. The...
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Finance
Profit on Option
You have purchased a call option contract on Dash common stock. The option has an exercise price of $32.00 and Dashs stock currently trades at $30.00. The option premium is quoted at $2.20.
a. Calculate your net profit on the option contract if Dashs stock price rises to $35.00 and you exercise the option.
b. Calculate your net profit on the option contract if Dashs stock price rises to $33.00 and you exercise the option.
c-1. If the stock price is $31.00, what would be the gain or loss if you exercise or not exercise the option.
c-2. Based on your answers above would it be more profitable to exercise the option or not exercise the option
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