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A hypothetical call option on stocks of the company Wizard: the strike price is $ 2 0 per share and the option has 1 day
A hypothetical call option on stocks of the company Wizard: the strike price is $ per share and the option has day to expire. You find someone willing to sell the described option at $ per share. If the market price of Wizard is $ per share, what could you do as a rational trader who wants to maximize profits and minimize risk? Hint: we had an exercise in class where you were asked to create an option contract. We discussed what the rule was and what if the rule was violated. Your answer should be based on our class discussions
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