You wrote eight call option contracts on JIG stock with a st

You wrote eight call option contracts on JIG stock with a strike price of $40 and an option price of $.40. What is your net gain or loss on this investment if the price of JIG is $46.05 on the option expiration date?

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Net loss = ($.40 + $40 ?$46.05) ×100 ×8 Net loss = ($-5.65) ×800 Net loss = $-4,520