An investor purchases a call option in a stock that is currently selling for $50 per share on January 3, 2016
He pays $6 per share for the option with an exercise price of $57 and an expiration date of April 17, 2016. On April 16, 2016 the stock is selling for $58 and the investor exercises the option and immediately sells the stock. How much total gain or loss did the investor realize?
A) - $500
B) $100
C) Breakeven
D) $700
Answer: A
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