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Hoots : Stock and Class Question The current price of an American call option with exercise price is 0 written on X company is .40. The call option expires on March 19,2019. the current price of the stock of X company is 6.69. - freshhoot.com

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Stock and Class Question
The current price of an American call option with exercise price is 0 written on X company is .40. The call option expires on March 19,2019. the current price of the stock of X company is 6.69. If you buy the stock today and the stock price rises to 0.00 before the option expires. How much $ can I expect to make by exercising the option to buy the stock and selling the stock at market value of 0.00. please include both the price of the option and the exercise price as cost.


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This sounds like a homework problem. Here's a hint: if you're long the call and exercise it, you get to buy the stock at the strike.


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