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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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