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What is the trader net profit

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Question - A trader buysper share a call option on 100 shares of GE with a strike price of $20 and a time to maturity of one year. The option premium is $1.47. At the end of one year, the price of GE stock is $25.46. What is the trader's net profit (gain or loss)? Assume that the trader held the option to expiration and then exercises the option if it is in-the-money.

Reference no: EM133069889

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