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Michelle takes a long position in a call option on CG Stock with a strike price of $35. The option expires in one month. She
Michelle takes a long position in a call option on CG Stock with a strike price of $35. The option expires in one month. She pays a premium of $2 for the option today. Which of the following statements is true:
a. She breaks even if the price of CG Stock is $33 when the option matures
b. She will only exercise the option if the price of CG Stock exceeds $37 at maturity
c. She triples her money if CG Stock rises to $41 at maturity
d. She will exercise the option if the price exceeds $35 at maturity
e. Both (c) and (d) are true
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