Question
Company AVC stock is currently selling at $200 per share. A one-year American call option with strike price $50 trading on the BXC options exchange
Company AVC stock is currently selling at $200 per share. A one-year American call option with strike price $50 trading on the BXC options exchange sells for $75.
1. How would you take this opportunity to make a profit?
2. Suppose the option is a European call option instead, what is your strategy to make a profit?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
