Example: (Hypothetical) I created a position on a stock or commodity options market, and have a position of (bought) 20 Call Options with strike price of 100 USD and I paid the premium of 10 USD. If the next day the premium fell to 8 USD and the underlying price fell to 95 USD, how much Loss/Gain did i make?

(10-8) * 20 = 40. The other data is just for figuring out how much the options worth.




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