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Suppose we have a call option on a stock with the following details: strike price $50, current stock price $50, call option premium $5. If
Suppose we have a call option on a stock with the following details: strike price $50, current stock price $50, call option premium $5. If we buy the call option, calculate the resulting holding period return for the following future stock prices on the expiry date of the option:
Future stock price at option expiry Return on call option
$45
$50
$55
$60
$70
$80
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