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Please explain the steps taken You hold an American call option with a $30 strike price on a stock that sells at $35. The option
Please explain the steps taken
You hold an American call option with a $30 strike price on a stock that sells at $35. The option sells for $5 one year before expiration. Compare the cash flows at expiration from: 1) Exercising the option now and putting the $5 proceeds in a bank account until the expiration date 2) Holding on to the option until expiration, selling short the stock, and placing the $35 you receive into the same bank accountStep by Step Solution
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