Kizspy | Question: 2 (Choose 1 answer)
(27578)The spot price of the market index is $900. The annual rate of interest on treasuries is 2.4% (0.2%per month). After 3 months the market index is priced at $920. An investor has a long call option on the index at a strike price of $930. What profit or loss will the writer of the call option earn if the option premium is $2.00?
A. $2.00 gain
B. $2.00 loss
C. $2.01 gain
D. $2.01 loss
