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An investor took a long position and paid $ 175 for 1 European-style 100 call option contract with a strike price of $ 91. These
An investor took a long position and paid $ 175 for 1 European-style 100 call option contract with a strike price of $ 91. These options expire in 60 days. The underlying stock is currently trading at $ 89.
A) Calculate 1) the breakeven point of this strategy, 2) the intrinsic value and 3) the time value of the bonus.
B) On day 35, if the share price increases to $ 94, should the investor buy the shares?
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