# Stock and Class Question

The current price of an American call option with exercise price is \$130 written on X company is \$2.40. The call option expires on March 19,2019. the current price of the stock of X company is \$126.69. If you buy the stock today and the stock price rises to \$140.00 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 \$140.00. please include both the price of the option and the exercise price as cost.

• Your description of your position isn't clear. If the 3/19 \$130 call is written then you are short the call and you are obligated to sell the stock if the call owner exercises it. Asking about exercising the call to buy the stock is a non starter if the call was written. Commented Feb 20, 2019 at 20:36
• en.wikipedia.org/wiki/Black%E2%80%93Scholes_equation
– user67084
Commented Feb 20, 2019 at 21:03
• The current price of an American call option with exercise price \$130, written on McCormick & Company stock is \$2.40. The call option expires on March 31, 2019. The current price of one McCormick & Company stock is \$126.69. If you buy the call today and the stock price rises to \$140 before your option expires, How much money would you expect to make by exercising the option to buy the stock and simultaneously selling the stock at market value of \$140? Include both the price of the option and the exercise price as costs. Commented Feb 20, 2019 at 22:07
• perhaps i didn't word it right originally. Commented Feb 20, 2019 at 22:07
• Thanks. I tried to use the black scholes method/calculator but this question doesn't provide me with the information i need to use it Commented Feb 20, 2019 at 22:38