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Suppose you own an American call option on a nondividend-paying stock with strike price of $100 and due in three months from now. The continuously

image text in transcribed Suppose you own an American call option on a nondividend-paying stock with strike price of $100 and due in three months from now. The continuously compounded risk-free interest rate is 1% and the stock is currently selling for $105. (a) What is the payoff from exercising the option now? (b) What is the least payoff from selling the option now? Suppose that you can not sell your call. (c) What happens if you exercise now

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