If Bill exercises the option when the market price reaches $48, what percent return did Bill receive on her investment?
=Market Price - (Strike Price + Call price) / Call Price
=48 - (43 + 2) / 2
= 3 / 2
= 150 percent
What is the greatest loss that Bill could have experienced on her investment?
Call Price X No. of Shares
2 X 100
= $ 200 maximum loss
Accountant
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