The option will expire worthless that is the buyer

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The option will expire worthless: that is, the buyer will not exercise his/her right to purchase the shares for $100 per share. The purchaser of the option loses the $5 per share premium. B. Suppose that after three months, the price of IBM stock has stayed at $100 per share. The option will expire worthless: that is, the buyer will not exercise her/his right to purchase the shares for $100 per share. The purchaser of the option loses the $5 per share premium.
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Call Option Example C. Suppose that after three months, the price of IBM stock has gone up to $110 per share. In this case, the buyer of the call option will exercise his option. The purchaser of the option will exercise his/her right to purchase 100 shares for $100 per share. The purchaser will then go to the market to sell his/her share of stock for $110 per share. Thus the purchaser makes a profit
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