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You buy 10 contacts of a call option on IBM at an exercise priceof $150 per share. The premium is 10% of the exercise price.

You buy 10 contacts of a call option on IBM at an exercise priceof $150 per share. The premium is 10% of the exercise price. Theexpiration is 6 months from now. The annual interest rate is12%.Q2. 2 answers

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