Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
A trader sells a call option on a stock index with a strike price of 2,400 for a premium of 25.Thevalueofaone−pointmoveintheindexis25. The value of a one-point move in the index is 25.Thevalueofaone−pointmoveintheindexis1. At expiration, the stock index is trading at 2,450. The trader's profit is:
A
-$50.
B
-$25.
C
$25.
