Business, 14.04.2020 17:35, Beast3dgar

Calculate the after-tax profit (28% marginal tax rate) for the following example. Suppose a stock is priced at $45 and a 3 month call on the stock with an exercise price of $50 is priced at $4. You buy one call contract and hold it until expiration. At expiration, the stock is at $49.

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Calculate the after-tax profit (28% marginal tax rate) for the following example. Suppose a stock is...