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On June 30, Year 1, Durable Products Company (DPC) purchased a call option that gives it the right to buy 45,000 shares of Toys-R-Specialty Inc.

On June 30, Year 1, Durable Products Company (DPC) purchased a call option that gives it the right to buy 45,000 shares of Toys-R-Specialty Inc. stock over the next 60 days at an exercise price of $37.50. DPC paid a $1.25/share call premium for this option. Assume that the stock price traded at the following maximum price(s) over the next 60 days (or four 15-day periods) Period 1: Days 1-15 $37.50 Period 2 Days 16-30 $37.75 Period 3: Days 31-45 $38.80 Period 4: Days 46-60 $39.25 Using the stock data above, what is the earliest period that the company would most likely consider exercising its (full) call option? arch O V DELL 67F Sunny

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