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Stock XYZ is selling for $30 a share. An American call option on this stock with a strike price of $35 is trading at $2

Stock XYZ is selling for $30 a share. An American call option on this stock with a strike price of $35 is trading at $2 per share. Which of the following statements is correct?

a.

the call is in the money

b.

you can make arbitrage profit by writing the call because it is priced above intrinsic value

c.

the call is out of the money

d.

you can make arbitrage profit by buying the call and exercising it immediately

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