Calculation of the Annualized Holding Period Payoff on the Call for an Investment

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Question

Suppose an investor closes a call position when the holding period payoff Z on the option is 8.75%.  Assuming a holding period of 90 days, what is the annualized holding period payoff AZ on the call?

Summary

This question belongs to finance and discusses about calculation of the annualized holding period payoff on the call for an investment.

Total word count: 6

 

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