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Consider a stock priced at $30 and a call option is available at an exercise price of 30 and a time to expiration of six
Consider a stock priced at $30 and a call option is available at an exercise price of 30 and a time to expiration of six months. The call is priced at $2.89. There are no dividends on the stock and the option is European. Assume that all transactions consist of 100 shares or one contract (100 options). What is the maximum profit for a writer of the call option?
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Essentials Of Business Analytics
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
1st Edition
128518727X, 978-1337360135, 978-1285187273
