Question
Circular file stock is selling for $50 a share. You see that call options on the stock with an exercise price of $40 are selling
Circular file stock is selling for $50 a share. You see that call options on the stock with an exercise price of $40 are selling at $6. What should you do? What will happen to the option price as investors identify this opportunity?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
