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Can you do me a favor and model this in excel for me? I'm very stuck 1. (Call option basics) On 11 May 2015 Kellogg

image text in transcribedCan you do me a favor and model this in excel for me? I'm very stuck

1. (Call option basics) On 11 May 2015 Kellogg stock closed at $63.92. For $2.69 you can buy a call option on Kellogg with an exercise price of $65. The option expires 18 December 2015. CHAPTER 17 Introduction to Options 573 a. What right does this call option give you? b. Suppose you buy the call option and hold it until the expiration date. If the price of Kellogg on 18 December 2015 is $70, will you exer- cise the option? What will be your profit? If the price of Kellogg on 18 December 2015 is $55, will you exer- cise the option? What will be your profit

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