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Suppose you purchase a call option to buy IBM common stock at $50 per share in September. The current price of IBM is $37 and
Suppose you purchase a call option to buy IBM common stock at $50 per share in
September. The current price of IBM is $37 and the option premium is $10. What
is the intrinsic value of this option? As the expiration date on the option
approaches, what will happen to the size of the option premium?
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