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  3. the price of a stock is $53. a trader sells 4 call

The price of a stock is $53. A trader sells 4 call option contracts on...

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Question

Accounting

The price of a stock is $53. A trader sells 4 call option contracts on the stock with a strike price of $57 with the option price $2. The options are exercised when the stock price is $60. What is the traders net profit or loss?

Group of answer choices

A. Gain of $200

B. Loss of $200

C. Loss of $500

D. Gain of $400

E. Loss of $400

Answer & Explanation Solved by verified expert
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