Assume you purchased the right to sell 6,000 shares of JC Penney stock in May 20
ID: 2703790 • Letter: A
Question
Assume you purchased the right to sell 6,000 shares of JC Penney stock in May 2010 at a strike price of $30 per share. Suppose the stock sells for $24.11 per share immediately before your options
Assume you purchased the right to sell 6,000 shares of JC Penney stock in May 2010 at a strike price of $30 per share. Suppose the stock sells for $24.11 per share immediately before your options
Use the following quotes for JC Penney stock options: Assume you purchased the right to sell 6,000 shares of JC Penney stock in May 2010 at a strike price of $30 per share. Suppose the stock sells for $24.11 per share immediately before your options' expiration. What is the rate of return on your investment? What is your rate of return if the stock sells for $33.61 per share? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.Explanation / Answer
Return on investment at $24.11 21.77% Return on investment at $33.61 -100%
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