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Business, 18.11.2019 19:31 klongstreet1731

Johanna places a combination trade as follows: she buys one share of vanhoutte long for $10.60 and at the same time she buys a call on vanhoutte that has an exercise price of $10.10 and a premium of $1.40.

what is the profit or loss on the two trades combined if at the time of expiration of the call option vanhoutte is trading at $12.70 per share?

assume that she gets out of her long position at the same time her option expires.

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