Question
Suppose a European call option to buy a share for $22.00 costs $1.50.The stock currently trades for $19.00.If the option is held to maturity under
Suppose a European call option to buy a share for $22.00 costs $1.50.The stock currently trades for $19.00.If the option is held to maturity under what conditions does the holder of the option make a profit?Note:ignore time value of money.
Group of answer choices
a.When the price of the stock is greater than $23.50.
b.When the price of the stock is greater than $22.00.
c.When the price of the stock is greater than $20.50.
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
