Kizspy Question: 26
(Choose 1 answer)
A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and
rises to $55 on the expiration date. The speculator will exercise the option on the expiration date (if it is feasible
to do so). What is the speculator's profit per unit?
A. $1
B. $5
C. $2
D. -$2
