Answer:
$5,300
Explanation:
A customer buys 1 FLB Oct 50 call at 3 and she exercises the option to buy 100 shares
= 3 × 100 shares
= $300
The customer bought 100 shares at a price of $50
= 50 × 100 shares
= $5,000
Therefore, the cost basis of the 100 shares can be calculated as follows
= $300 + $5,000
= $5,300
Hence the cost basis of the 100 shares is $5,300
