18.

The market value of AAA stock has been rising over the past few days and today AAA stock is priced at $35. The European call option you are holding on AAA stock expires in 3 days. What action will you take if the strike price of the call option is $30 and a premium of $2 has been paid on this option?

a.

ask for a refund of the premium.

b.

exercise the option.

c.

let the option expire unexercised.

d.

exercise the option in 3 days if the stock's market price is greater than $30.