Question
When you take a long position on a European call option, when and how can you make a profit (assuming no option fees)? A. Whenever
When you take a long position on a European call option, when and how can you
make a profit (assuming no option fees)?
A. Whenever before the maturity the spot price is higher than the strike price and then
exercise it.
B. Only on the maturity date and the spot price is higher than the strike price and then
exercise it.
C. Whenever before the maturity the spot price is lower than the strike price and then
exercise it.
D. Only on the maturity date and the spot price is lower than the strike price and then
exercise it.
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Financial Management In The Sport Industry
Authors: Matthew T. Brown, Daniel A. Rascher, Mark S. Nagel, Chad D. McEvoy
3rd Edition
0367321211, 978-0367321215
