Question
Based on your analysis, you estimate Wavemobile's stock price is going to increase from its current level of $18 sometime during the next three months.
Based on your analysis, you estimate Wavemobile's stock price is going to increase from its current level of $18 sometime during the next three months. You can buy a 3-month call option giving you the right to buy 1 share at a price of $32 per share. If Wavemobile's stock price increases to $59, what would the exercise value be?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
