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I need help in this questions. Please help me fast and accurate answer. (5 points) The price of ABC stock is currently $42 per share.
I need help in this questions. Please help me fast and accurate answer.
(5 points) The price of ABC stock is currently $42 per share. ABC does not pay a dividend. You buy a six-month call on ABC, with a strike price of $45. The option costs $200. a. If the stock's price is $50 at expiration, is the call in, at, or out of the money? What is the fundamental value of the option at expiration? b. What holding period retun would you earn on this call if the stock's price is $50 at expiration? Ignore transaction costs and taxesStep by Step Solution
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