Wednesday, August 27, 2008

Freddie Mac (FRE)

Current price $4.75, September Call at 5 is worth $0.80 per share.
Initial Investment = 475
Option Investment Value = 580
Option Income Yield = 22.1
Option Total Profit = 500 - 475 + 80
= 105
Strike Price Value = 500
Investment Profit = 25
Option Income = 80

No comments: