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You bought Stock A at a purchase price of: Call option strike price: $25 $35 Option expiration date: Price of call option: June 30, 2020
You bought Stock A at a purchase price of: Call option strike price: $25 $35 Option expiration date: Price of call option: June 30, 2020 $5 Stock goes up to $50 Stock goes down to $5 A. Profit/Loss on stock if sell now B. Profit/Loss on call option if sell now All other things being equal, would you expect the price of the call option to be higher or lower than $5 for a stock that is identical to Stock A in all respects except: C. The stock has higher volatility than Stock A? Is it higher or lower? D. The expiration date of the call option is July 31, instead of June 30? Is it higher or lower? You bought Stock A at a purchase price of: Call option strike price: $25 $35 Option expiration date: Price of call option: June 30, 2020 $5 Stock goes up to $50 Stock goes down to $5 A. Profit/Loss on stock if sell now B. Profit/Loss on call option if sell now All other things being equal, would you expect the price of the call option to be higher or lower than $5 for a stock that is identical to Stock A in all respects except: C. The stock has higher volatility than Stock A? Is it higher or lower? D. The expiration date of the call option is July 31, instead of June 30? Is it higher or lower
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