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Suppose you believe that Basso Inc.'s stock price is going to increase from its current level of $19 sometime during the next 6 months. You
Suppose you believe that Basso Inc.'s stock price is going to increase from its current level of $19 sometime during the next 6 months. You can buy a 6-month call option giving you the right to buy 1 share at a price of $32 per share. If Basso's stock price actually rises to $43, what would the exercise value be?
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