Question
You just purchased a 6-month Coke call option with the strike $50 for a premium of $5. On the expiration day of the call option,
You just purchased a 6-month Coke call option with the strike $50 for a premium of $5. On the expiration day of the call option, _____ (ignoring the transaction cost)
you should exercise the call if the Coke stock price > $50
you should exercise the call only if the Coke stock price > $55
you should always let the option expire
you should exercise the call if the Coke stock price < $50
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Investments
Authors: Zvi Bodie, Alan J. Marcus, Alex Kane
6th Edition
0072861789, 9780072861785
