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Tundra Corporation's stock price is currently $35. You buy a call option for $1.50 that gives you the right to buy 1 share of stock

Tundra Corporation's stock price is currently $35. You buy a call option for $1.50 that gives you the right to buy 1 share of stock at a price of $40. What would your net pre-tax profit be if the stock price rises to $45.

a.) $5.00 b.) $10.00 c.) $3.50

d.) $8.50

e.)none of the above

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