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Assume Call and Put options on IBM Stock have a strike of $50 have premia of $2.50 and $2.00 respectively. If at maturity the spot
Assume Call and Put options on IBM Stock have a strike of $50 have premia of $2.50 and $2.00 respectively. If at maturity the spot is $52.00, which option gets exercised (if any) and which is true:
Group of answer choices
Neither; Profit is $0
Put; Loss $.50
Call; Profit $2.50
Call; Loss $.50
Put; Profit is $.50
None of the other answers
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