Suppose you buy three June PHLX call options with a 90 strike price at a price of 2.3 (¢/€).
a. What would be your total dollar cost for these calls, ignoring broker fees?
b. After holding these calls for 60 days, you sell them for 3.8 (¢/€). What is your net profit on the contracts assuming that brokerage fees on both entry and exit were $5 per contract and that your opportunity cost was 8% per annum on the money tied up in the premium?