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# If Brice decides to buy a March call option(s) with an exercise price of 35, what is his dollar gain (loss) if he closes his position in Olivia Corporation when the stock is selling at 41.30?

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On the last day of October, Brice Jones buys 200 shares of Olivia Corporation common stock selling 39.25 per share and is also considering the purchase of an Olivia option.

Option Strike EXP Vol. Last vol. last
Olivia 35 Dec 1,629 3.75 2,703 1.25
39.25 35 Mar 6,333 5.00 675 2.00
39.25 40 Dec 1,212 2.50 1,628 4.50
39.25 40 Mar 620 3.50 936 4.75

If Brice decides to buy a March call option(s) with an exercise price of 35, what is his dollar gain (loss) if he closes his position in Olivia Corporation when the stock is selling at 41.30?

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On the last day of October, Brice Jones buys 200 shares of Olivia Corporation common stock selling 39.25 per share and is also considering the purchase of an Olivia ...

#### Solution Summary

Reasoning and computations given for you.

\$2.19