Question

what would be the profit or loss to an investor who bought an october expiration tesla call option with an exercise price of 1300 if rtesla

Answer 1

Answer: -$200 or $200 loss

Step-by-step explanation:

Profits are made on call options when the price of the underlying asset increases in value.

These contracts are sold per 100.

The premium paid is subtracted from the profit to find the net profit.

Net Profit = ( 1,301 - 1,300 - 3) * 100

= -$200