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4. (5 Points) Mrs. Jolly has an option to buy a share of Fine Management Inc. Suppose the exercise price is $45 and the call

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4. (5 Points) Mrs. Jolly has an option to buy a share of Fine Management Inc. Suppose the exercise price is $45 and the call premium is $2. The price of the stock at expiration date is $54. a) Will Mrs. Jolly exercise her option? b) What is Mrs. Jolly's gain or loss on this option? Show your calculations. State whether it is a gain or loss

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