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Suppose the current stock price is $100 per share. A call option is trading with an exercise price of $90 per share. Call has a
Suppose the current stock price is $100 per share. A call option is trading with an exercise price of $90 per share. Call has a premium of $9 per share. Is this option correctly priced? If not, why not? Can you make a profit?
S = $100
E = $90
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