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( 2 6 ) A call option on Yubaba common stock has a strike price = $ 2 5 , and the current price of
A call option on Yubaba common stock has a strike price $ and the current price of the stock $ This option isa out of the moneyb at the moneyc in the moneyd definitely not worth purchasinge none of the above The Yubaba call option in above is a European option. Therefore,a this option must have been purchased in Londonb this option can be exercised any time between now and the expiration date only in Londonc this option can be exercised only on the expiration dated if you want to eliminate all investment risk, only purchase American call options on Yubaba stocke none of the above Other things constant, the lower the strike price on the Yubaba call optiona the more valuable the optionb the less valuable the optionc strike price has no impact on option valued the greater the probability that Yubaba will experience future financial distresse none of the above
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