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Chapter 14: Options Market 7 Problems: Writing Call Options: A call option on Illinois stock specifies an exercise price of $38. Today's price of the

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Chapter 14: Options Market 7 Problems: Writing Call Options: A call option on Illinois stock specifies an exercise price of $38. Today's price of the stock is $40. The premium on the call option is $5. Assume the option will not be exercised until maturity, if at all. Complete the following table: Assumed Stock Price at the Net Profit or Loss per Share to Time the Call Option is About Be Earned by the Writer to Expire (Seller) of the Call Option

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