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You buy a call option contract on GE with an exercise price of $ 2 5 . If the market price of GE on the
You buy a call option contract on GE with an exercise price of $ If the market price of GE on the expiration date of the option contract is $ how can you profit by exercising the call option contract?
Since the exercise price is lower than the market price, you cannot profit by exercising the call option.
You can buy the stock for $ sell it for $ and earn a spread of $ per share.
You can return the call option to GE and collect $ per share.
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