Stock options a essex company has a price of 55share today

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Stock Options a) Essex Company has a price of $55/share today, and you purchase 2 calls with a $68 strike price for $2.75/share. (Each call consists of 100 share options.) In 6 months, when your options are about to expire, you exercise your options. The stock is trading for $75/share at this time. What is your % return for this 6 month time period? b) If you were long in Essex during this time (i.e., you purchased the equivalent number of shares for $55 and sold them for $75), what would your % return have been? c) For part a, if the stock fell to $48/share during your option period, how much money would you have lost?Is this amount less than what you would have lost if you had been long in the stock? d) From part c, if you take into account Time Value of Money at 10% annual MARR, what was your loss per share of being long in the stock?

Reference no: EM13580051

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