Assignment:
A trader buys 100 European call options with a strike price of $20 and a time to maturity of one year. The cost of each option is $2. The price of the underlying asset proves to be $22 in one year.
Required:
Question: What is the overall (the one year period) trader's gain or loss if interest rate is 10% per annum continuos compounding?
Note: Please provide full description.