An investor purchases a call option with an exercise price, Finance Basics

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An investor purchases a call option with an exercise price

An investor purchases a call option with an exercise price of $55 for $2.60. The same investor sells a call on the same security with an exercise price of $60 for $1.40. At expiration, 3 months later, the stock price is $56.75. All other things being equal and given an annual interest rate of 4.0%, what is the net profit or loss to the investor?

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Finance Basics: An investor purchases a call option with an exercise price

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