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QUESTION 43 10 points Save Answer A Call Option has an excercise price of $10.00 and an expiry date in six months. The underlying stock

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QUESTION 43 10 points Save Answer A Call Option has an excercise price of $10.00 and an expiry date in six months. The underlying stock is currently trading for $12.00 Required: A. What is the minimum price an investor would pay for this option? Could an investor profit if the call option was actually trading at $1.00? (5 marks) B. What is the maximum price an investor would pay for this option? If the option is trading for $13, how could an investor earn a risk-free profit? (5 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). QUESTION 43 10 points Save Answer A Call Option has an excercise price of $10.00 and an expiry date in six months. The underlying stock is currently trading for $12.00 Required: A. What is the minimum price an investor would pay for this option? Could an investor profit if the call option was actually trading at $1.00? (5 marks) B. What is the maximum price an investor would pay for this option? If the option is trading for $13, how could an investor earn a risk-free profit? (5 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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