Net profit and rate of return on transaction


Caterpiller shares are currently priced at $58. You decide to buy 5 May 60 call options at a premium of $2.60. If Caterpiller shares rise to $64 by May, will you exercise? Ignoring commissions, what is your net profit (or loss) and rate of return on the transaction?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Net profit and rate of return on transaction
Reference No:- TGS055531

Expected delivery within 24 Hours