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Question
An investor is committed to purchasing 100 shares of World Port Management stock in six months. She is worried the stock price will rise significantly over the next 6 months. The stock is at $45 and she buys a 6-month call with a strike of $50 for $250. At expiration the stock is at $54. What is the net economic gain or loss on the entire stock/option portfolio?
A. -$500
B. -$750
C. -$900
D. $400
E. $500
Answer
This answer is hidden. It contains 45 characters.
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