Question: 2) Answer the following: - a) Explain the function of option market to investor. b) The Acorp's call option has an exercise price of RM20.

 2) Answer the following: - a) Explain the function of option

2) Answer the following: - a) Explain the function of option market to investor. b) The Acorp's call option has an exercise price of RM20. Currently, Acorp share is RM25 and the call option has a time value of RM3. i) Identify whether the call option is in the money, out of the money or at the money ii) Calculate the call price for Acorp

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