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You are discussing options with a friend. Your friend tells you that they have a call option with a strike price of $ 4 0

You are discussing options with a friend. Your friend tells you that they have a call option with a strike price of $40 that they paid $3 for. The stock price at expiration is $41.78. TRUE or FALSE: Your friend should not exercise the option as they will lose money overall on the position.
True
False

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