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Calculate the option profit to the trader

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Reference no: EM132169109

It is March and a trader buys 100 August call options (=1 option contract) with a strike price of $26. The stock price is $27.32 and the option price is $5.61.

At the expiration, the stock price becomes $31.44. Calculate the option profit to the trader.

Reference no: EM132169109

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