A call option on the stock of Bedrock Boulders has a market price of $7. The stock
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A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $30 a share, and the option has an exercise price of $25 a share.
a. What is the exercise value of the call option?
b. What is the premium on the option?
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Related Book For 
Corporate Finance A Focused Approach
ISBN: 9780324180350
1st Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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