Question
john bought an option contract on BHP shares with an exercise price of $50 and an expiry date in one month. The market price for
john bought an option contract on BHP shares with an exercise price of $50 and an expiry date in one month. The market price for BHP shares today is $46.82. The call price is trading at $0.35.
At what minimum share price will the option buyer exercise the option on the expiration date? Provide reasoning in the answer.
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Management Information Systems Managing the Digital Firm
Authors: Kenneth C. Laudon, Jane P. Laudon
15th edition
134639715, 978-0134639710
