a.You have only one day left to decide whether to exercise a call option on the Company
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Question:
a.You have only one day left to decide whether to exercise a call option on the Company X stock, which you purchased six months ago for shs. 300 . The call option exercise price is shs 54.
i.) For what range of stock price should you exercise the call on the last day of
the call life?
ii.) For what range of stock price would you realize a loss (including the
premium paid for the call option)?
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
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