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Suppose a European call option to buy a share for $120.00 costs $6.00. The stock currently trades for $118.00. If the option is held to
Suppose a European call option to buy a share for $120.00 costs $6.00. The stock currently trades for $118.00. 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.
When the price of the stock is greater than $126. |
When the price of the stock is greater than $122. |
When the price of the stock is greater than $120. |
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