You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?
A) 173.9%, −100%
B) 73.9%, −100%
C) 57.5%, −173.9%
D) 73.9%, −57.5%
E) 100%, −100%

Question

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The Answer of You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?
A) 173.9%, −100%
B) 73.9%, −100%
C) 57.5%, −173.9%
D) 73.9%, −57.5%
E) 100%, −100%

You Purchased a Call Option for $3