How to calculate stock option return on investment?

Return on Investment is usually calculated as Income/Assets. In this case, if the option were to buy a share of stock at $50, and the price were $60, the value would be ($60-$50)/$50 = 10/50 = 20% ROI.

Normally ROI is used to compare investments that span a period of time. In the case of stock options, however, the transaction is usually over a few days.

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