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A call option with an exercise price of 25 has the following values at these prices Stock price Call option price 25 3.00 30 7.50

  1. A call option with an exercise price of 25 has the following values at these prices

Stock price

Call option price

25

3.00

30

7.50

35

12.00

40

16.50

45

21.00

50

25.50

Determine the option premium. (3 marks)

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