You hold a six-month European call-option contract on Sertile stock. The exercise price of the call is

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You hold a six-month European call-option contract on Sertile stock. The exercise price of the call is $$100$ per share. The option will expire in moments. Assume there are no transactions costs or taxes associated with this contract.

a. What is your profit on this contract if the stock is selling for $$130$?

b. If Sertile stock is selling for $$90,$ what will you do?

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Corporate Finance With Powerweb

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6th Edition

Authors: Stephen A. Ross

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Question Posted: May 27, 2024 07:03 AM

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You hold a six-month European call-option contract on Sertile stock. The exercise price of the call is

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Corporate Finance With Powerweb

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